The attorneys at Eccleston Law have launched an investigation of Houston-based investment adviser Select Asset Management LLC, its principal Brian A. Bjork, Select Asset Fund I, LLC, Select Asset Prime Index Fund, LLC, and others following SEC offering fraud charges. Investors are encouraged to contact our attorneys to discuss their recovery options.
On August 1, 2011, the SEC announced that it obtained a temporary restraining order, asset freeze, appointment of a receiver and other emergency relief against Houston investment adviser Select Asset Management LLC (“Select Asset”), its principal Brian A. Bjork, Select Asset Fund I, LLC, Select Asset Prime Index Fund, LLC, the J. David Group of Companies, Inc. ("J. David Group"), J. David Financial Group LP ("J. David Financial"); Select Capital Management, LLC and the Estate of Joel David Salinas ("Salinas Estate") on charges of offering fraud.
Specifically, the complaint alleges that from 2004 through the present, Brian Bjork offered securities in two fraudulent securities schemes, raising a total of $52 million. The SEC also alleges that in the first scheme, Brian Bjork, alongside business associate Joel David Salinas, offered investors corporate and other bonds through J. David Group of Companies, and J. David Financial Group, and raised approximately $39 million from more than 100 investors. According to the SEC complaint, Bjork and Salinas promised investors safe, fixed income from highly-rated corporate and other bonds, but in reality they never acquired the bonds as promised.
The SEC complaint alleges that in the second scheme, Brian Bjork—through Select Asset and its subsidiary defendant Select Capital Management —offered securities issued by two private funds and raised approximately $13 million from at least 52 investors since August 2007. According to the SEC complaint, the two funds, which were controlled by Brian Bjork, Select Asset and Select Capital, commingled investor money, failed to provide promised financial statements, and transferred money to fund-affiliated entities in related-party transactions undisclosed to investors.
The SEC complaint further alleges that in making the affiliated loans, certaindefendants failed to conduct required due diligence and loan-approval procedures that had been promised to investors in the private placement offering memoranda.
Eccleston Law represents individual and institutional investors nationwide to recover their investment losses caused by unsuitable investment recommendations, breach of fiduciary duty, negligence or other misconduct. We have extensive experience representing investors in arbitration and litigation disputes with securities broker-dealers and investment advisory firms, and have recovered tens of millions of dollars for investors.
If you have suffered losses investing with Select Asset Management, Brian A. Bjork, Select Asset Fund I, Select Asset Prime Index Fund, the J. David Group of Companies, J. David Financial Group, or Select Capital Management, you may be entitled to seek recovery through securities arbitration.
Please contact one of the attorneys at the Eccleston Law Offices at (312) 332-0000 for a free, no obligation consultation to discuss your recovery options.
FinancialCounsel.com, hosted by James J. Eccleston, is a companion website to this blog, along with EcclestonLaw.com. It contains complementary material of general interest to investors and financial services professionals. Investors will find material on securities arbitration to recover investment losses; industry and financial markets intelligence; and strategies for estate planning. Professionals have access to material on broker/adviser registration, regulation, compliance and disciplinary proceedings; industry and financial markets intelligence; strategies for estate planning; and broker/adviser employment litigation and injunctions, including defamation and non-competition/solicitation issues. 
