|July 27, 2001||FFI
Man Arrested for Securities Fraud for Selling More Than $300,000 Worth of
Fraudulent Promissory Notes to
Fannin County Residents
ATLANTA … A joint investigation by the Secretary of State’s Securities Division, Fannin County authorities and the Georgia Bureau of Investigation (GBI) has culminated in the indictment of a Cobb County man on 20 felony counts of violating the Georgia Securities Act and the Georgia Racketeer Influenced and Corrupt Organizations (RICO) Act, Secretary Cox said today.
Brent R. Butts, 48, formerly of Gilmer County was arrested Thursday night by Secretary of State investigators, GBI agents and Fannin County Deputies at his home in Cobb County and was transported to the Fannin County jail where he is being held. A bond hearing is scheduled for August 8th.
Mr. Butts allegedly sold more than $300,000 worth of unregistered securities in
the form of fraudulent “promissory notes” to four Fannin County residents
promising “no risk” returns on their investments. The indictment alleges
that investors were also told the notes were “guaranteed” and insured
through F.D.I.C., although no documentation was ever provided to the investors.
In addition to these allegations, Mr. Butts also allegedly sold more than $1.6
million of unregistered promissory notes to two Gilmer County residents.
Nationally, fraudulent and unregistered promissory note schemes have bilked Americans of more than $300 million in the last three years and have emerged as the leading source of securities fraud in the nation. In recent months, criminal and civil actions have been pursued throughout the country against many individuals involving thousands of promissory note victims.