Diversified Lending Group, Inc., et al.

On March 4, 2009, the SEC obtained a temporary retraining order and asset freeze against Bruce Friedman and two of his companies, Diversified Lending Group, Inc. and its wholly-owned subsidiary, Applied Equities, Inc. According to the complaint, since at least January 2004, Friedman fraudulently raised approximately $216 million from hundreds of investors nationwide, many of whom are senior citizens, by promising guaranteed high returns through real estate-related investments. The SEC alleged that, in reality, Friedman did not invest investor money as represented and instead diverted a substantial amount to undisclosed business ventures and investments unrelated to real estate. The SEC also alleged that Friedman misappropriated at least $47 million to support his lavish lifestyle.

For more information about the SEC's action, you can read Litigation Release No. 20926 (Mar. 5, 2009).

The Court also appointed David A. Gill, Esq. as the permanent Receiver over the defendants’ assets. For the latest information about the Receivership, you can visit the Receiver’s website.