A United States District Court judge in San Jose granted a preliminary injunction against a Scotts Valley man and four financial companies he controlled based on accusations of investment fraud of more than $60 million.
The preliminary injunction, granted June 12, froze all money and assets of GLR Growth Fund, GLR Capital Management, GLR Advisors and Geringer, Luck and Rode LLC, companies controlled by John Geringer, a Scotts Valley financial adviser.
In addition, Geringer was ordered to give the court 10 business days’ notice before dealing, selling or transferring any assets related to the case.
Judge Lucy Koh, who is presiding over the case, granted the Securities and Exchange Commission’s request for the injunction in the San Jose Division of the Northern District of California U.S. District Court.
The SEC alleged May 24 in a written complaint that Geringer had raised more than $60 million from individual investors since 2005 by claiming false gains of 17 to 25 percent, despite actual losses. When some investors withdrew their investments, the SEC alleged, Geringer paid them dividends with money raised from other investors in a manner resembling a Ponzi scheme.
Geringer initially had until Tuesday, June 19, to answer a complaint from the SEC that alleged that his companies violated many provisions of the United States Securities and Exchange Act. However, he and SEC representatives agreed to extend the deadline until July 30.