November 30, 2020 – ORANGE, Calif. — Former insurance coverage agent Brian Fredric Sauls, 48, of Santa Ana, was arrested on 13 felony counts of securities violations, theft from an elder, and residential housebreaking after allegedly persuading shoppers to speculate over $1.1 million in unregistered securities so as to obtain over $148,000 in undeserved commissions.
From 2016 via 2017, persuaded six shoppers, together with one aged shopper, to speculate a complete of $1,126,333 into Future Revenue Funds, LLC. (FIP), an unregistered non-exempt safety. Sauls acquired over $148,000 in commissions from these gross sales.
In April 2018, FIP was shut down and Sauls’ six shoppers suffered losses totaling $745,419. In March 2019, a Federal Grand Jury indicted FIP and FIP founder Scott Kohn for mail and wire fraud, as FIP was decided to be a “Ponzi” scheme. Kohn is in custody awaiting trial in federal courtroom. Total losses for people who invested in FIP, together with Sauls’ shoppers, have been estimated at roughly $310 million.
An investigation performed by the California Division of Insurance coverage revealed Sauls was not skilled, licensed or licensed to promote securities. Sauls did not correctly disclose the potential danger of loss to his shoppers concerning the FIP investments he really useful and he didn’t give his shoppers the chance to overview the disclosure paperwork he had them signal. The investigation additionally uncovered that he had initiated funding transactions on his shoppers’ accounts with out their consent or data. Sauls obtained funds from one shopper by visiting their residence, resulting in expenses of residential housebreaking.
“This former agent allegedly violated California legislation and abused his shoppers’ belief by steering them to a “Ponzi” scheme that finally resulted in an almost $750,000 loss,” mentioned Insurance coverage Commissioner Ricardo Lara. “These are appalling actions, and my Division will work with the Orange County District Lawyer’s Workplace to receive justice for his shoppers.”
In July 2020, Sauls voluntarily surrendered his California Insurance coverage License. The prison criticism towards him consists of two enhancements, for alleged fraudulent felony conduct over $100,000, and alleged fraudulent felony conduct over $500,000.
Sauls was arrested on Friday, November 20, 2020, and booked into the Orange County Jail. Bail was set at $100,000. This case is being prosecuted by the Orange County District Lawyer’s Workplace.
Supply: CA. Dept. of Insurance coverage