3 Irvine Firms Accused of Bilking Investors

The Securities and Exchange Commission charged three Irvine-based companies with fraud, 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 lawsuit.

Named in the suit 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.

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.

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.

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

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

The SEC complaint alleges that estimates provided to investors on their capital were overstated and unsupported, documents did not state that sales commissions went as high as 40%, investor money previously paid was not properly accounted for and a proxy contained false financial statements.

While the sale of partnership interests stopped in August, the SEC said, Graves recently had been trying to raise money to buy a 50% stake in the Springfield, Mo., wireless cable market.