© 2017 The Texas Lawbook.
By Mark Curriden
(May 23) – Katy-based Bryant United Capital Funding and its CEO are operating an illegal real estate mortgage investment scheme that defrauded more than 100 investors out of millions of dollars, the U.S. Securities and Exchange Commission claims in documents that were unsealed Friday in federal court in Sherman.
The SEC accuses BUCF and its leader, Thurman Bryant III of Frisco, with securities fraud and making false statements to investors.
Court records show that Bryant and BUCF raised $22.7 million from more than 100 investors, including $1.4 million during the first four months of 2017.
Bryant promised 30 percent annual returns through risk-free investments in the mortgage industry.
“Bryant and BUCF promised investors their funds would be safely preserved in a secure escrow account and used for the sole purpose of serving as proof of funds to enable BUCF to secure a line of credit with which to pursue a mortgage-related investment program,” the SEC’s complaint states.
But the SEC argues that those promises were false and that nearly $5 million of the $22.7 million funded Bryant’s personal living expenses.
“No secure escrow accounts existed, and there was no mortgage-related investment program,” the agency claims. “BUCF has never used investor monies as Bryant claimed it would, and monies paid out as referral fees and supposed profits on investments are, rather, misappropriated monies sourced from other investors, including Ponzi payments.”
The SEC claims that Bryant also offered large referral fees to investors who brought in additional investors.
U.S. District Judge Amos Mazzant of Sherman issued a temporary restraining order Friday stopping all operations by Bryant and BUCF.
The SEC states that Bryant has made $16.8 million in payments to investors, but that the money came from other investors.
Bryant and BUCF gave $1.37 million of investor funds to Carlos Goodspeed of Addison, a/k/a Sean Phillips, who operates a business known as Top Agent Entertainment.
“[Goodspeed] purports to be a concert promoter and booking agent for entertainers like Taylor Swift and Aubrey ‘Drake’ Graham,” the SEC states in its complaint. Bryant intentionally or at least recklessly put BUCF investor funds at risk by transferring them to Goodspeed, not only because doing so violated his express promises to investors about how their money would be used, but also because even a rudimentary review of Goodspeed’s background online and in public records would have revealed relevant concerns about his track record and reputation.
“Goodspeed provided no services or consideration in exchange for these funds,” the agency contends.
Lawyers for Bryant and BUCF did not respond to requests for comment.
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