FINRA has announced that it has filed a complaint against WR Rice Financial Services and Joel I Wilson alleging that Wilson and other brokers at the firm misrepresented limited partnership interests to investors from “predominantly low-to-moderate-income households.” According to FINRA’s press release,
Wilson and WR Rice raised funds promising that the proceeds would be invested in land contracts on residential real estate in Michigan, paying an interest rate of 9.9 percent, when in fact, investors’ funds were used to make unsecured loans to companies Wilson owned or controlled. In addition, FINRA alleges that WR Rice and Wilson failed to disclose to investors that Wilson extended the improper loans due to an inability to pay them as they became due.
See Dept. of Enforcement v. W R Rice, et al, Disciplinary Proceeding No. 2012030531101 (FINRA).