Four Men Arrested on Securities Fraud Charges for Allegedly Bilking
More than $300,000 from Elderly Georgians
 

ATLANTA …Secretary of State Cathy Cox today announced the arrests of four men charged with selling phony promissory notes to at least 10 elderly Georgians. 

Joe Chancey, 52, of Lyons, GA, Bobby Grimes 67, of McCray, GA, B. Kirk Grimes, 45, of Albuquerque NM and Ricky H. Grimes, 39, of Chesapeake, VA were all arrested on multiple counts of securities fraud within the last week. The two Georgia men are currently being held in the Appling County jail. U.S. Marshals are expected to return Ricky H. Grimes, President of Global Wealth Development Inc., and B. Kirk Grimes, CFO of Global Wealth Development Inc., to Appling County to face charges.  

The four men are named defendants in the fraud case against Global Wealth Development, Inc. The men allegedly sold fake investments in Global Wealth Inc. – securities in the form of promissory notes.  All of the investors were elderly insurance clients who trusted insurance salesmen Joe Chancey and Bobby Grimes.  The victims valued their advice and were falsely assured the investments were safe, guaranteed and would earn 2 to 3 percent return each month.  The defendants told their clients “President Reagan had started this investment program” while other investors were told that “President Clinton made this investment program available” in order to convince them it was a safe and secure investment.

None of the four men nor the investment offerings were registered with the Secretary of State’s Securities Division pursuant to the Georgia Securities Act of 1973.  In addition, the partners allegedly omitted to disclose material facts, made untrue statements and engaged in schemes with intent to defraud. As the salesmen, Bobby Grimes and  Chancey received a 1 percent commission per month for the term of each promissory note he sold (i.e.: 12 month promissory note would equal 12% commission per year on the sale, based on the face value of the note). When Bobby Grimes and Chancey made joint sales they would split the 1% per month commission.

“I applaud the investigators and staff attorneys in my office for their efforts in securing an indictment in this case as well as the U.S. Marshals and Appling County authorities who arrested these men ensuring they will face the charges against them,” said Secretary of State Cathy Cox.

The case was opened in March 2003 by the Georgia Bureau of Investigation when one of the investor’s accountants called to inquire about Global Wealth Inc.  After reviewing the evidence, the GBI contacted the Securities Division of the Secretary of State’s office.  Ten south Georgia residents bought these fraudulent securities, losing approximately $305,000.00.  The scam reached across southeast Georgia and affected citizens of Appling, Glynn, Long, Tattnall, Toombs, Wayne and Wheeler counties.