Christopher Brogdon, the Atlanta-based businessman accused by the U.S. Securities and Exchange Commission of misusing investor funds raised to purchase and renovate senior living facilities, has been ordered by a federal court to develop a plan to repay the investors, “The Bond Buyer” reports.
Judge Kevin McNulty of the U.S. District Court for the District of New Jersey issued an order Dec. 28 that requires Brogdon to submit a plan to a court-appointed monitor by Jan. 27. McNulty’s judgment, which according to “The Bond Buyer” covers 19 municipal bond and private placement deals made from 1992 to 2013 in several states, includes Brogdon’s wife, Connie, as a “relief defendant.” If Brogdon’s submitted repayment plan does not completely cover what he owes investors, then additional funds will be taken from his or his wife’s currently frozen personal assets, according to the order.
The SEC announced fraud charges and an emergency asset freeze against Brogdon Nov. 20, alleging that he amassed nearly $190 million through dozens of municipal bond and private placement offerings in which investors purportedly earned interest from revenues generated by the assisted living community, nursing home or other retirement housing projects supported by their investment. Brogdon secretly commingled investor funds, however, and diverted them to other business ventures and personal expenses, the SEC alleges.
At the time of the charges, Brogdon was the CEO, president and director of Global Healthcare REIT.