BULLETIN: Recidivist Huckster Jailed In Florida In ‘Body Scan’ Securities Swindle Masterminded Separate Ponzi Scheme In California That Netted $11 Million, SEC Says; Jerry Aubrey Charged Amid Allegations He And Brother Peeled Off Millions For Basketball Tickets And Lavish Home Featuring ‘Giant Fish Aquariums With Miniature Sharks’
Jerry L. Aubrey first came on the SEC’s radar screens in 1998, when he was hawking “securities in a fictitious cruise ship,” records show.
By 2007, he’d been charged criminally in Florida with securities fraud for selling shares of a bogus “body scan imaging business” between December 2000 and October 2003. He was convicted of those charges last year and ordered to spend five years in state prison and pay $5.7 million in restitution.
But even as Aubrey was sitting in prison, investigators were putting together another fraud case — this one involving a purported oil-and-gas venture in West Virginia that Aubrey hawked from California before he was jailed in Florida.
Aubrey now has been charged civilly in that case, and the SEC said the business — Progressive Energy Partners LLC (PEP) — was an $11 million Ponzi scheme operated through a boiler room with 196 phone lines.
The scammer and his brother, Tim Aubrey, peeled off millions from the PEP Ponzi, the SEC charged.
“Jerry and Tim Aubrey misappropriated more than $3.2 million of investor funds for their personal use,” the SEC charged. “Jerry Aubrey withdrew about $500,000 directly from PEP’s bank accounts to pay for personal expenses, and he distributed another $2.7 million in cash and checks to himself, Tim Aubrey, their mother, and their company, Allied Marketing Consultants. A portion of the $2.7 million in cash and checks were alleged salary and sales commissions paid to Jerry and Tim Aubrey, even though PEP’s legitimate business activities were virtually nonexistent.”
How did the money get spent?
On “all kinds of things,” the SEC charged — things such as “limo rides . . . to [Staples Center] for Lakers game[s] . . . Vegas . . . strip clubs and just being a high roller.”
But that wasn’t all, according to the SEC:
The rent alone on the “Aubrey family’s lavish house” in California consumed as much as $7,100 a month, the SEC charged, alleging that the three-story, 4,000-square-foot home was “equipped with large screen televisions, a pool table, giant fish aquariums with exotic fish, a hot tub, a pool, and a tennis court.”
Among the exotic fish were “miniature sharks,” according to the SEC.
More investor money was used to pay “for the defense of Jerry Aubrey’s criminal securities fraud case in Florida,” the SEC charged. Meanwhile, there were “family vacations, which included two trips to Maui, Hawaii,” and other trips for associates to “Las Vegas, Palm Springs and Big Bear.”
Jerry Aubrey also bought a “Lexus car and jewelry” for his girlfriend. Other money was directed at the purchase of “[t]rucks, cars, and Harley Davidson motorcycles, the SEC charged.
Two PEP pitchmen — Brian S. Cherry and Aaron M. Glassser — also were charged civilly alongside the Aubrey brothers.
Jerry Aubrey now is listed as an inmate at the Tomoka Correctional Institution, a state prison in Daytona Beach.