{"id":883,"date":"2011-05-19T18:36:25","date_gmt":"2011-05-19T18:36:25","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2011\/05\/five_exbrooke_executive_settle"},"modified":"2022-03-09T16:06:00","modified_gmt":"2022-03-09T22:06:00","slug":"five-exbrooke-executive-settle","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/five-exbrooke-executive-settle\/","title":{"rendered":"Five Ex-Brooke Executive Settle SEC Fraud Charges Accusing Them of Concealing Financial Firm\u2019s Deteriorating Finances"},"content":{"rendered":"

\t\t\t\tFive of the six former Brooke executives accused of securities fraud <\/a>have settled the charges filed by the US Securities and Exchange Commission. According to the SEC, the defendants misrepresented the deteriorating financial condition of Brooke, which eventually filed for bankruptcy. The agency says they employed “virtually any means necessary” to hide Brooke’s financial state, which included liquidity crises that occurred almost every week. The SEC also contends that Aleritas’s loan losses, which was in the hundreds of millions of dollars, caused a number of regional banks to fail.<\/p>\n

Among those that settled are brother Robert and Leland Orr. Robert formerly served as Brooke Corp. chairman, while Leland was chief executive. The other three who settled were former Aleritas executives Michael S. Lowry and Michael S. Hess and former Brooke Capital and Brooke Corp. CFO Travis W. Vrbas. A sixth executive, former Brooke executive Kyle Garst, is contesting the securities fraud allegations. <\/p>\n

By agreeing to settle the ex-Brooke executives are not admitting to or denying the allegations. The Orr brothers have consented to disgorge profit and pay fines, but the court has yet to determine the figures. Lowry has agreed to $214,500 in disgorgement, $24,004 in prejudgment interest, and a $175,000 penalty. Hess is to pay a $250,000 penalty. Vrbas has consented to a $130,000 penalty. <\/p>\n

The SEC has also accused two Brooke affiliates, insurance agency franchisor Brooke Capital Corp. and lender Aleritas Capital Corp., of securities fraud. The fallout from the alleged fraud has had a “devastating” effect on the livelihood of “hundreds of insurance franchisees.”<\/p>\n

Related Web Resources: <\/strong>
\nFive former Brooke execs settle SEC fraud charges, Reuters, May 4, 2011
\nFinancial Firm Execs Misled Investors, \u2028SEC Contends; Five of Six Settle Charges, BNA Securities Law Daily, May 5, 2011
\n
\nMore Blog Posts:<\/strong>
\nSEC ALJ Finds Several Brokers Liable for Unlawful Penny Stock Sales<\/a>, Stockbroker Fraud Blog, May 9, 2011
\nTexas-Based AIG’s Largest Private Shareholder Says US Will Likely Sell Its Shares in the Insurer At Lower Price than Expected<\/a>, Stockbroker Fraud Blog, May 13, 2011
\nSecurities Practices of JPMorgan Chase & Goldman Sachs Under Investigation by Federal Investigators, Institutional Investor Securities Blog, May 19, 2011 Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Five of the six former Brooke executives accused of securities fraud have settled the charges filed by the US Securities and Exchange Commission. According to the SEC, the defendants misrepresented the deteriorating financial condition of Brooke, which eventually filed for bankruptcy. The agency says they employed “virtually any means necessary” to hide Brooke’s financial state, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3741],"tags":[],"class_list":["post-883","post","type-post","status-publish","format-standard","hentry","category-securities-fraud"],"yoast_head":"\nFive Ex-Brooke Executive Settle SEC Fraud Charges Accusing Them of Concealing Financial Firm\u2019s Deteriorating Finances — Investor Lawyers Blog — May 19, 2011<\/title>\n<meta name=\"description\" content=\"Five of the six former Brooke executives accused of securities fraud have settled the charges filed by the US Securities and Exchange Commission. — May 19, 2011\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/five-exbrooke-executive-settle\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Five Ex-Brooke Executive Settle SEC Fraud Charges Accusing Them of Concealing Financial Firm\u2019s Deteriorating Finances — Investor Lawyers Blog — May 19, 2011\" \/>\n<meta name=\"twitter:description\" content=\"Five of the six former Brooke executives accused of securities fraud have settled the charges filed by the US Securities and Exchange Commission. — May 19, 2011\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards & Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Five Ex-Brooke Executive Settle SEC Fraud Charges Accusing Them of Concealing Financial Firm\u2019s Deteriorating Finances — Investor Lawyers Blog — May 19, 2011","description":"Five of the six former Brooke executives accused of securities fraud have settled the charges filed by the US Securities and Exchange Commission. — May 19, 2011","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/five-exbrooke-executive-settle\/","twitter_card":"summary_large_image","twitter_title":"Five Ex-Brooke Executive Settle SEC Fraud Charges Accusing Them of Concealing Financial Firm\u2019s Deteriorating Finances — Investor Lawyers Blog — May 19, 2011","twitter_description":"Five of the six former Brooke executives accused of securities fraud have settled the charges filed by the US Securities and Exchange Commission. — May 19, 2011","twitter_misc":{"Written by":"Shepherd Smith Edwards & Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/five-exbrooke-executive-settle\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/five-exbrooke-executive-settle\/"},"author":{"name":"Shepherd Smith Edwards & Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Five Ex-Brooke Executive Settle SEC Fraud Charges Accusing Them of Concealing Financial Firm\u2019s Deteriorating Finances","datePublished":"2011-05-19T18:36:25+00:00","dateModified":"2022-03-09T22:06:00+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/five-exbrooke-executive-settle\/"},"wordCount":384,"articleSection":["Securities Fraud"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/five-exbrooke-executive-settle\/","url":"https:\/\/www.investorlawyers.com\/blog\/five-exbrooke-executive-settle\/","name":"Five Ex-Brooke Executive Settle SEC Fraud Charges Accusing Them of Concealing Financial Firm\u2019s Deteriorating Finances — Investor Lawyers Blog — May 19, 2011","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2011-05-19T18:36:25+00:00","dateModified":"2022-03-09T22:06:00+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Five of the six former Brooke executives accused of securities fraud have settled the charges filed by the US Securities and Exchange Commission. — May 19, 2011","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/five-exbrooke-executive-settle\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/five-exbrooke-executive-settle\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/five-exbrooke-executive-settle\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Five Ex-Brooke Executive Settle SEC Fraud Charges Accusing Them of Concealing Financial Firm\u2019s Deteriorating Finances"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards & Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards & Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards & Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-ef","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/883","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=883"}],"version-history":[{"count":3,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/883\/revisions"}],"predecessor-version":[{"id":22268,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/883\/revisions\/22268"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}