Securities and Exchange Commission v. Christopher A. Faulkner, Homes Inc., HOMESINC Renaissance, LLC, Matthew Rapoport, and Earl Nelson Davenport, Civil Action No. 3:17-cv-02405-B (N.D. Tex. filed September 11, 2017)
SEC Obtains Preliminary Injunctions Against "Frack Master" and Four Others in Purported House Flipping Scheme
The Securities and Exchange Commission has obtained court-ordered emergency relief to halt a real-estate scam perpetrated by Christopher A. Faulkner and four others. Faulkner is also the subject of another pending SEC enforcement action alleging he orchestrated an $80 million oil-and-gas scheme. According to the complaint in that case, Faulkner disingenuously promoted himself as an oil-and-gas expert and marketed himself as the "Frack Master."
In the alleged real estate scheme case that was unsealed September 22, 2017 in the U.S. District Court for the Northern District of Texas, the Honorable Jane Boyle entered an ex parte order on September 14 granting a temporary restraining order, asset freeze, and other emergency and ancillary relief against Faulkner and Defendants Homes Inc. (Homes), HOMESINC Renaissance, LLC (Renaissance), Matthew Rapoport, and Earl Nelson Davenport. On September 28, 2017, the court entered an agreed preliminary injunction against Faulkner, Rapoport, and Davenport. On October 12, 2017, the court entered a preliminary injunction against Homes and Renaissance. These injunctions keep the defendants' assets frozen and restrain and enjoin the defendants, during the pendency of the case, from violating the antifraud provisions of the federal securities laws and from participating, directly or indirectly, in the issuance, purchase, offer, or sale of any security.
According to the SEC's complaint, which was filed under seal on September 11, 2017, Faulkner orchestrated a scheme involving Rapoport, Davenport, and others, to deceive and mislead investors about Faulkner's latest venture, Homes, by claiming that it:
had a proven and extensive track record of offering and selling passive real estate investments to investors;
used investor funds for the acquisition, renovation, and re-sale of residential real estate in Southern California; and
consistently produced double-digit returns to its investors.
The SEC alleges that these statements are untrue, that Faulkner created and disseminated misleading promotional materials, and that Faulkner and Rapoport created and maintained a website that touted properties the company falsely claimed to have flipped in prior offerings. The SEC further alleges that Davenport, a salesman previously sanctioned by two states for unrelated securities-law violations, lied to investors about Homes' track record and the purported past successes of Homes and Renaissance, which the Defendants falsely claimed was the latest in a series of Homes offerings. In reality, Renaissance was the only offering, and it was a scam, according to the SEC's complaint. The SEC contends that Homes has raised at least $168,750 from at least eight investors, but has not used any investor funds for real-estate transactions.
The SEC's complaint charges Faulkner, Rapoport, Davenport, Homes, and Renaissance under Section 17(a) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint further charges Faulkner, Davenport, and Rapoport under Section 5 of the Securities Act. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against the defendants.
In the alleged $80 million oil-and-gas fraud case - SEC v. Faulkner, et al., No. 3:16-CV-01735-D (N.D. Tex.) - the Honorable Sidney A. Fitzwater, on September 25, 2017, froze the assets of Faulkner and two others, appointed a temporary receiver over their assets, and preliminarily enjoined them from violating the antifraud provisions of the federal securities laws.
The SEC's investigation into the alleged real estate scheme has been conducted by Kimberly Cain, Scott Mascianica, and John Devine, and supervised by Jim Etri and Jessica B. Magee of the Fort Worth Regional Office. The SEC's litigation is led by B. David Fraser and Timothy McCole.
Great american gold is owned and operated by con man earl davenport. He is a sick man suffering from a severe case of ptsd. My 1 week investigation revealed some scary details.
I pretended to be broke and needed a job and wanted to see his true character. My credentials allow me to get hired quickly. So earl thinks i am broke and in distress. I am far from that. I conned the con. He proceeded to let me know that he will pay me $300 a week and i must work 9 hours a day. I proceeded to smile as his true character was shown immediately. It validated why he can’t keep his staff. They turn as he burns them.
It gets more disturbing.
I did have a minute to jump on his computer when he went to the bathroom and it got way more disturbing. ((Redacted per tos))). This guy is sick. After reviewing the porn he walks on his sales floor and screams at everybody. Still trying to understand this. The only conclusion is ptsd.
Some of his victims include...
He hired a french girl lulu to bring him leads. I think but have not verified that he is taking advantage of her citizenship. Further investigation will reveal if this is a fact.
Brad. Don’t know his last name but he recently left merrill lynch. He has children and a wife to support. Earl is paying him 0. Earl convinced him that he will make him money. Conned him.
Earl’s strategy to the consumer: he pretends to be your friend and wants to convert your whole ira into gold. Not 30%. 100%. He is charming. Sociopathic in nature. I can see right through it. He aggressively recruits those fired by metals.com. His recruits last a week once they see his true colors, they bounce. The energy is horrible there. You can feel it once you walk in.
Earl davenport is a black guy pretending to be white on the phone. He actually plays a racist role on the phone. He does this trump racist rant to his potential texas prospects. You will never see a picture of him online. He is hiding. He is actually a fat guy who smells really bad. I feel he has a farting issue.
The other strategy. They want to burn you. You work for one week and then matthew and earl take your leads.
You can see it as he carries himself all slouched over. I pretended to be broke so matthew revealed he is living in a sober living. He is a drug addict selling precious metals way over spot. He pretends to be a licensed financial advisor. He has too many felonies to get licensed.
My one week investigation revealed a lot. I sent a series of text messages to earl making it look emotional in nature on why i am no longer working there.
Lastly, earl has a price on his head. He has a lot of security cameras everywhere. He is very paranoid but for good reason. He is a con man.
I am now contacting the proper authorities to stop this con on both employees and customers.
I’d like to compare notes with you, my name is Terrence Price. I used to work for Mr. Davenport and Mr. Faulkner at First Capital Gold in Inglewood CA.
Great American Gold, Inc. Reviews
SCAMMER ALERT!!
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23979 / November 3, 2017
Securities and Exchange Commission v. Christopher A. Faulkner, Homes Inc., HOMESINC Renaissance, LLC, Matthew Rapoport, and Earl Nelson Davenport, Civil Action No. 3:17-cv-02405-B (N.D. Tex. filed September 11, 2017)
SEC Obtains Preliminary Injunctions Against "Frack Master" and Four Others in Purported House Flipping Scheme
The Securities and Exchange Commission has obtained court-ordered emergency relief to halt a real-estate scam perpetrated by Christopher A. Faulkner and four others. Faulkner is also the subject of another pending SEC enforcement action alleging he orchestrated an $80 million oil-and-gas scheme. According to the complaint in that case, Faulkner disingenuously promoted himself as an oil-and-gas expert and marketed himself as the "Frack Master."
In the alleged real estate scheme case that was unsealed September 22, 2017 in the U.S. District Court for the Northern District of Texas, the Honorable Jane Boyle entered an ex parte order on September 14 granting a temporary restraining order, asset freeze, and other emergency and ancillary relief against Faulkner and Defendants Homes Inc. (Homes), HOMESINC Renaissance, LLC (Renaissance), Matthew Rapoport, and Earl Nelson Davenport. On September 28, 2017, the court entered an agreed preliminary injunction against Faulkner, Rapoport, and Davenport. On October 12, 2017, the court entered a preliminary injunction against Homes and Renaissance. These injunctions keep the defendants' assets frozen and restrain and enjoin the defendants, during the pendency of the case, from violating the antifraud provisions of the federal securities laws and from participating, directly or indirectly, in the issuance, purchase, offer, or sale of any security.
According to the SEC's complaint, which was filed under seal on September 11, 2017, Faulkner orchestrated a scheme involving Rapoport, Davenport, and others, to deceive and mislead investors about Faulkner's latest venture, Homes, by claiming that it:
had a proven and extensive track record of offering and selling passive real estate investments to investors;
used investor funds for the acquisition, renovation, and re-sale of residential real estate in Southern California; and
consistently produced double-digit returns to its investors.
The SEC alleges that these statements are untrue, that Faulkner created and disseminated misleading promotional materials, and that Faulkner and Rapoport created and maintained a website that touted properties the company falsely claimed to have flipped in prior offerings. The SEC further alleges that Davenport, a salesman previously sanctioned by two states for unrelated securities-law violations, lied to investors about Homes' track record and the purported past successes of Homes and Renaissance, which the Defendants falsely claimed was the latest in a series of Homes offerings. In reality, Renaissance was the only offering, and it was a scam, according to the SEC's complaint. The SEC contends that Homes has raised at least $168,750 from at least eight investors, but has not used any investor funds for real-estate transactions.
The SEC's complaint charges Faulkner, Rapoport, Davenport, Homes, and Renaissance under Section 17(a) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint further charges Faulkner, Davenport, and Rapoport under Section 5 of the Securities Act. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against the defendants.
In the alleged $80 million oil-and-gas fraud case - SEC v. Faulkner, et al., No. 3:16-CV-01735-D (N.D. Tex.) - the Honorable Sidney A. Fitzwater, on September 25, 2017, froze the assets of Faulkner and two others, appointed a temporary receiver over their assets, and preliminarily enjoined them from violating the antifraud provisions of the federal securities laws.
The SEC's investigation into the alleged real estate scheme has been conducted by Kimberly Cain, Scott Mascianica, and John Devine, and supervised by Jim Etri and Jessica B. Magee of the Fort Worth Regional Office. The SEC's litigation is led by B. David Fraser and Timothy McCole.
https://www.sec.gov/litigation/litreleases/2017/lr23979.htm
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Modified: 11/03/2017
Con-Men
Research Earl Nelson Davenport, Chris Faulkner, Homes Inc scandal.
Great american gold is owned and operated by con man earl davenport. He is a sick man suffering from a severe case of ptsd. My 1 week investigation revealed some scary details.
I pretended to be broke and needed a job and wanted to see his true character. My credentials allow me to get hired quickly. So earl thinks i am broke and in distress. I am far from that. I conned the con. He proceeded to let me know that he will pay me $300 a week and i must work 9 hours a day. I proceeded to smile as his true character was shown immediately. It validated why he can’t keep his staff. They turn as he burns them.
It gets more disturbing.
I did have a minute to jump on his computer when he went to the bathroom and it got way more disturbing. ((Redacted per tos))). This guy is sick. After reviewing the porn he walks on his sales floor and screams at everybody. Still trying to understand this. The only conclusion is ptsd.
Some of his victims include...
He hired a french girl lulu to bring him leads. I think but have not verified that he is taking advantage of her citizenship. Further investigation will reveal if this is a fact.
Brad. Don’t know his last name but he recently left merrill lynch. He has children and a wife to support. Earl is paying him 0. Earl convinced him that he will make him money. Conned him.
Earl’s strategy to the consumer: he pretends to be your friend and wants to convert your whole ira into gold. Not 30%. 100%. He is charming. Sociopathic in nature. I can see right through it. He aggressively recruits those fired by metals.com. His recruits last a week once they see his true colors, they bounce. The energy is horrible there. You can feel it once you walk in.
Earl davenport is a black guy pretending to be white on the phone. He actually plays a racist role on the phone. He does this trump racist rant to his potential texas prospects. You will never see a picture of him online. He is hiding. He is actually a fat guy who smells really bad. I feel he has a farting issue.
The other strategy. They want to burn you. You work for one week and then matthew and earl take your leads.
You can see it as he carries himself all slouched over. I pretended to be broke so matthew revealed he is living in a sober living. He is a drug addict selling precious metals way over spot. He pretends to be a licensed financial advisor. He has too many felonies to get licensed.
My one week investigation revealed a lot. I sent a series of text messages to earl making it look emotional in nature on why i am no longer working there.
Lastly, earl has a price on his head. He has a lot of security cameras everywhere. He is very paranoid but for good reason. He is a con man.
I am now contacting the proper authorities to stop this con on both employees and customers.
I have more info!
I’d like to compare notes with you, my name is Terrence Price. I used to work for Mr. Davenport and Mr. Faulkner at First Capital Gold in Inglewood CA.
Con-Man Earl Davenport
I’m another witness to this posting. I acknowledge with proof that everything this gentleman stated was/is true!