Diversified Lending Group (DLG) was a California corporation purported to be in the business of acquiring and operating income producing properties. In 2009, the Securities & Exchange Commission filed suit alleging that DLG was a $216 million dollar securities fraud and froze the assets of the company and appointed a receiver.
DLG offered promissory notes in the form of one or five year Secured Investment Notes that guaranteed rates of return of 9% or 12%. Applied Equities, Inc. a subsidiary of DLG functioned as DLG's investment servicing division and contracted with other entities including stockbrokers and broker-dealers who sold the notes nationwide.
Bruce Fred Friedman died in French custody in March 2012 while awaiting extradition to Los Angeles on charges related to the scam.
In February 2013, an Order Accepting Offer of Settlement was entered in the FINRA Department of Enforcement complaint against Forrest Nolan Jackson, who at the time in question was a broker with PlanMember Securities Corporation, and who, according to the complaint, had sold $60 million of the notes. Jackson sold the notes through an entity called Your Platinum Distributors and without the approval of his employer PlanMember Securities. Jackson was barred from associating with any FINRA member in any capacity. FINRA records reveal that Jackson worked for the following firms during the time he was registered:
- Grant Williams L.P. 8/2009-1/2011
- Longview Financial Group 5/2009-7/2009
- Ascher/Decision Services 10/2008-3/2009
- PlanMember Securities 2/2007-7/2008
- Quest Capital Stratigies 9/2005-8/2006
- Jackson National Life Distributors 7/2000-10/2003
If you purchased any of the Diversified Lending Group notes from a registered broker dealer, you may be able to recover all or a part of your losses through FINRA arbitration. Call for a no charge consultation with an experienced securities fraud attorney.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.