Print
Nearly 1 1/2 years after the Securities and Exchange Commission accused Gina Champion-Cain of operating a $300 million fraudulent investment scheme, the case is nearing an end this week with a proposed settlement in which the former San Diego businesswoman admits her guilt.
The court filing by the SEC stipulates that Champion-Cain must pay the “disgorgement of ill-gotten gains,” plus interest and a civil penalty, which will be determined by the federal judge overseeing the case.
The SEC filing also states that Champion-Cain admits to the allegations in the federal plea agreement accusing her of fraudulently raising hundreds of millions of dollars from investors by offering them an opportunity to make short-term, high-interest loans to individuals seeking to acquire liquor licenses. In truth, Champion-Cain, the complaint alleged, never used the money to make loans but instead diverted the funds to companies she controlled.