A Mother and Son Real Estate Deal Sours
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A Mother and Son's Real Estate Deal Goes Sour.http://www.brokeandbroker.com/index.php?a=blog&id=526
Pomfret Plantation -- a Long Story
Pomfret Plantation relied upon the sale of promissory notes to help fund the preliminary development of the land, including expenses of engineering and land use planning; preparing a plat for county approval; interior design; and architectural design. Between October 2004 and November 2005, Pomfret Plantation issued eleven promissory notes for a total of $1,000,000.
On May 22, 2006, Pomfret Plantation filed for Chapter 11 bankruptcy.
Kathy Gordon was Vice President of Respondent Medallion Invesestment Services, Inc. from January 25, 1999 until October 31, 2008. She was licensed as a securities principal, and she was also a shareholder, President and Chairman of the Board of Directors of Medallion’s holding company. Kathy Gordon introduced four of her brokerage and investment advisory clients to Pomfret Plantation for the purpose of the clients’ purchasing nine promissory notes for a total investment of $800,000.
Kathy Gordon served for one year as Secretary and/or Treasurer of Pomfret Ltd., firms in which her son, Matthew "Matt" Gordon, had a substantial ownership interest. Matt Gordon was sole owner of Gordon & Co. Ltd, through which he became President and managing director of Pomfret Plantation.
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