Estate of Investment Manager Sued By SEC

J. David Salinas, an investment manager, allegedly helped run a Ponzi scheme that defrauded investors (many of whom were prominent college basketball coaches) from millions by selling them $52 million in fake bonds. Salinas and the chief investment officer of his former company, Select Asset Management, defrauded investors from 2004 to present by offering securities in two fraudulent schemes.

On July 17, Salinas was found dead in his Texas home. His death was the result of a fatal gunshot wound, and a coroner later ruled the death a suicide. The U.S. Securites and Exchange Commission has since sued Salina’s estate for his allege involvement in the Ponzi scheme. A preliminary hearing is set for August 10, and U.S. District Judge Keith P. Ellison has granted the SEC’s request to freeze all of the Salinas’ estate’s assets.

See Jim McConville, SEC Sues Estate of Advisor Who Killed Himself, The Financial Advisor, Aug. 2, 2011.

Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.