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/litreleases/2008/lr20575.htm