SEC Charges 3 Irvine-Based Firms With Fraud

The Securities and Exchange Commission charged three Irvine-based companies with fraud Monday, saying they lured 300 people to invest $4.5 million in wireless cable television ventures that went sour.

Retirees and unskilled workers were falsely promised profits ranging from 223% to 900% of their investment in one to five years, the SEC said in the civil suit.

Named in the lawsuit filed in federal court were Broadcast Associates I, Broadcast Acquisitions Inc. and Broadcast Holdings Inc. Also cited were Arthur Graves, president of Broadcast Acquisitions, and Gregory Moeller, president of Broadcast Holdings.

A lawyer representing Moeller said he had not seen the SEC complaint and could not comment. Lawyers for the other defendants did not return calls for comment.

SEC lawyer Jonathan Golomb said Broadcast Associates, Broadcast Acquisitions and Graves consented to a preliminary injunction and an asset freeze order that requires accounting of funds.

“We do know that more than half of the money raised had been dissipated, but we will try to find if they have other assets,” Golomb said.

The SEC’s complaint seeks permanent injunctions, forfeitures of the defendants’ profits and civil penalties.

The SEC alleged the defendants schemed to sell partnership interests in Broadcast Associates that Broadcast Holdings would use to acquire rights to wireless cable TV systems.

The group first targeted a system in Bend, Ore., raising $1.9 million. But it failed to keep payments for an option to acquire the system, causing the owner to refuse to renew the option.