SEC Joins Probe of Defunct Investment Firm

The Securities and Exchange Commission has joined a far-reaching probe into a now-closed South Bay investment firm suspected of defrauding as many as 1,500 investors nationwide of $30 million to $50 million, authorities said.

While SEC officials refused to confirm or deny an inquiry, numerous well-placed law enforcement sources said the agency has joined the U.S. attorney’s office, the FBI and the state Department of Corporations in investigating the activities of Wellington Group, a once-thriving real estate enterprise that filed for protection under Chapter 11 of the federal bankruptcy code on Aug. 3.

In joining the case, the sources said, the SEC has essentially taken over the state’s inquiry into alleged securities fraud--an area also under investigation by the U.S. attorney and FBI.

The SEC could be looking into additional areas of securities law violations against Wellington and its former officers, including President Morris English Jr.