U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20575 / May 14, 2008
Securities and Exchange Commission v. Jeanetta M. Standefor, et al.,
United States District Court for the Central District of California,
Civil Action No.
CV 08-03164 RSWL
SEC Charges Promoters of a Multi-Million Dollar Real Estate Scheme
Targeting the African-American Community

The Securities and Exchange Commission today filed civil securities fraud charges against Jeanetta M. Standefor, age 40 of Altadena, California, and Pasadena, Calif.-based Accelerated Funding Group (AFG), for operating an $18 million real estate investment scheme targeting the African-American community.

The SEC's complaint, filed in federal district court in Los Angeles, alleges that between 2005 and 2007, Standefor and AFG solicited investors in a foreclosure reinstatement scheme through AFG's website, word of mouth, and testimonials by other seemingly successful investors. Standefor claimed investor funds would be used to cure defaults on distressed properties enticing investors with promises of returns of up to 50% within 30 to 45 days. AFG offering materials touted the foreclosure reinstatement program as "virtually risk free" and promised investors that their principal would be safely returned within 72 hours at their request.

In reality, according to the SEC's complaint, Standefor and AFG did not use investor funds to cure defaults on any residential properties and investors' requests for returns of their investments have been ignored. Standefor and AFG have instead operated a Ponzi-like scheme by using money from new investors to pay previous investors. Standefor misappropriated more than $1.9 million of investor funds for personal expenses such as her lavish wedding, honeymoon, cars, jewelry, tickets to entertainment events, and home renovations. Standefor and AFG also misused investor funds to pay $121,000 in consulting fees to Standefor's husband, Darrell R. Dansby.

The SEC's complaint alleges that the defendants violated the securities registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933. The complaint also alleges that the defendants violated the antifraud provisions of Section 17(a) of the Securities Act and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains, and civil penalties. The complaint also names Dansby as a relief defendant, alleging he received ill-gotten gains from Standefor's and AFG's fraudulent conduct.

The U.S. Attorney's Office for the Central District of California indicted Standefor yesterday, and the Federal Bureau of Investigation arrested her today. The California Department of Corporations today also issued a desist and refrain order to Standefor and AFG.

The SEC acknowledges the assistance of the U.S. Attorney's Office for the Central District of California, the Federal Bureau of Investigation, and the California Department of Corporations.

SEC Complaint in this matter



http://www.sec.gov/litigation/litrel...08/lr20575.htm

The woman is accused of using a real estate scam to bilk investors out of millions in a Ponzi scheme.
By Andrea Chang, Los Angeles Times Staff Writer
May 15, 2008
The FBI arrested the president of a Pasadena company Wednesday, a day after a federal grand jury indicted her on fraud charges, accusing her of operating a real estate investment scam.

The 11-count indictment, handed up in Los Angeles, charges Jeanetta M. Standefor of Altadena with wire fraud, mail fraud and money laundering.

Standefor, 40, and her company, Accelerated Funding Group, also were accused by the Securities and Exchange Commission of securities fraud in a lawsuit filed Wednesday in federal court in L.A.

According to the SEC's complaint, Standefor raised about $18 million from about 600 people in the Los Angeles area and in Nevada and Georgia from 2005 to 2007.

According to the complaint, Standefor targeted African American investors, who allegedly were told that they were buying "virtually risk-free" securities that would generate returns of as much as 50% within 45 days. The money raised purportedly was being invested to help save homeowners from foreclosure, the complaint says, but none of the funds were actually used that way.

Instead, following the pattern of a Ponzi scheme, some of the money was repaid to early investors to give the alleged scheme an air of legitimacy, while Standefor spent more than $1.9 million of the funds on personal expenses including her wedding and honeymoon, cars and home renovations, the SEC said in its lawsuit.

"Ms. Standefor unscrupulously tried to benefit from the pain felt by those affected by the downturn in the housing market," U.S. Atty. Thomas P. O'Brien said. "This case once again reminds us that promises of huge returns from investments should be thoroughly investigated."

Phone calls to Standefor's lawyer weren't returned Wednesday.

The criminal charges against Standefor carry maximum sentences totaling 180 years in prison. She remained in custody after an initial court appearance Wednesday.

andrea.chang@latimes.com

The Los Angeles Times