ATLANTA …Secretary of State Cathy Cox said today that Dougherty County Superior Court Judge Loring Gray has shut down an Albany-based insurance company, Southeastern Integrity, and granted the Secretary of State’s request to appoint a receiver for the assets of the firm.
        Southeastern Integrity’s CEO Timothy Eubanks, CFO Randy L. Wood and registered agent Lori E. Wood were named as defendants in the order. Each was directed to cease all business operations and turn over business and personal financial records to the receiver.
        Secretary Cox said today’s action was part of an ongoing investigation into Southeastern Integrity’s business practices, including possible violations of the Georgia Securities Act. Secretary Cox said the investigation was prompted by aggressive and fraudulent sales of securities to dozens of elderly South Georgia customers who have invested approximately one million dollars through the firm.
        In a complaint filed with the court, the Secretary of State alleged that Southeastern Integrity used persistent high-pressure sales tactics to convince elderly investors to purchase "stock option purchase agreements" which purported to return to purchasers "dividends" of between 10 and 12 percent. The complaint alleges that these securities were not registered with the state, and Southeastern would not be able to pay the return promised except through the sale of additional stock option purchase agreements. The Secretary of State further alleged in the court filing that defendants "participated in the foregoing enterprise through a pattern of racketeering activity" as defined by the Georgia Racketeer Influenced and Corrupt Organizations Act (RICO).
        "We have received information from a number of elderly Georgians that raises serious concerns about the legality of this firm’s business practices. Yesterday’s temporary restraining order and receivership provides us access to the records we need to quickly to complete this investigation," Secretary Cox said.
        Secretary of State agents, acting on behalf of the receiver, yesterday seized a building and other assets of Southeastern Integrity, Inc., located at 2003 Palmyra Road in Albany. Agents have also compiled inventories of related assets in other business and residential locations in Lee and Miller Counties.

Editors Note: Copies of the Secretary of State’s 21-page complaint, and Judge Gray’s order, are available upon request.