On January 29, 2019, the New Jersey State Attorney, Securities Fraud Prosecution Section filed a complaint for a civil action on behalf of the New Jersey Bureau of Securities in Mercer County Chancery Court alleging that Ford Graham, his wife Katherine Graham and several entities Ford Graham controlled participated in securities fraud relating to the sale of unregistered securities in purported oil and gas ventures. Media reports state that Graham, “with the active participation of his wife,” induced individuals in five states to invest close to $5 million with Graham’s LLCs in an alleged Ponzi Scheme.
The complaint alleges New Jersey natives invested $1.9 million with the LLCs in the Ponzi scheme. In connection with the fraudulent Ponzi scheme the New Jersey State Attorney General charged the Grahams with a the violation of the following under Title 49, Chapter 3 of the New Jersey Uniform Securities Laws:
1) N.J.S.A. 49:3-60 (offer and sale of unregistered securities)