The Securities and Exchange Commission (SEC) had announced it has charged two individuals and eight companies with fraud in relation to company securities and what was described as “charitable gift annuities.” The complaint was filed in the U.S. district court in Syracuse, New York.
Allegations of Investment Fraud
One of the defendants is James P. Griffin, the founder and Chief Executive Officer (CEO) of 54Freedom Inc. (54Freedom). Both Griffin and the company are located in Cazenovia, New York. 54Freedom was initially formed to sell insurance products to Americans with disabilities. However, after several years, the defendants changed the company’s purported business plan to focus on the sale of its charitable gift annuities. Throughout the company’s existence, the SEC claims the defendants provided unrealistic financial projections to prospective investors.