EFTA Document EFTA01296179

rdc DB12000P - Deutsche Bank Private Bank Batch Date: 6115/2017 Added to Monitoring: 06/15/2017 Alert Date: Alert 6/15/2017 Organization: Address: Tracking ID: Southern Financial LLC etiWily VIRGIN ISLANDS. U.S. KYC 1790655 Reporting ID: Alerted Entity it. 1 of 4 Entity Information Risk Priority: Critical Alert ID: 9476247.11602637.65444359 Entity ID: Ris kid: Entity Name: Address: Recent Event(s): 65444359 R22434574 Southern Financial Group Inc. • Charleston. South Carolina. UNITED STATES • Columbia. South Carolina. UNITED STATES • SEC - SEC Violations (Insider Trading. Securities Southern Financial Group was later shut down by charged in 2002 with a $25 million Ponzi scheme bonds.. 02/11/2008. Investment News Fraud) / CHG - Charged. 02/11/2008 the Securities and Exchange Commission after being The alleged fraud was unrelated to the Capstone Ccosetent win the teems and coo:leanof your ROC Subscrbet Agteernat the information contented te. this document is Iwo/eft purposesonly and is not lobe used to: imposesof deterrnntrg an onetsduars esiousynx any anal of any Cale. FCRA peurnstue sucrose. Use, further wen co sow such material and intormatono Stictest conhOtnee na In make use thereof any tordor sawing PorPosn, to relate I oNy to employees coquina° such informaten and rot to rause or doom* R to any 0the party T to Alai Warn-moo cortaned o :no d000neat may co may not pertain to the ochadual a entity reinforced in vow inquiry SDNY_Gls1_00058296 ris e I of 9 CONFIDENTIAL — PURSUANT TO FED. R.cDNEIDENTIAL DB-SDNY-0021120 EF1'A_00168856 EFTA01296179 rdc DB12000P - Deutsche Bank Private Bank Alert Batch Date: 6/15/2017 Alert Date: 6/15/2017 Added to Monitoring: 06/15/2017 Organization: Southern Financial LLC Address: C51Wily VIRGIN ISLANDS. U.S. Tracking ID: KYC 1790655 Reporting ID: Alerted Entity it. 1 of 4 Risk Priority: Critical Alert ID: 9476247.11602637.65444359 Event: • SEC - SEC Violations (Insider Trading, Securities Fraud) / ACT - Disciplinary. Regulatory Action, 03/09/2005 The SEC's complaint alleged that Southern's books and financial records inaccurately reflected a cash balance in an account ranging from $226.931.80 to $240.006.80: Southern failed to promptly give notice to the SEC and others of the net capital deficiencies as required by law; and that, the reports filed by Southern were inaccurate in that they misrepresented Southern's cash position and failed to include certain liabilities., 03/09/2005, SEC Administrative Proceedings - 2005 • SEC - SEC Violations (Insider Trading, Securities Fraud) / ACT - Disciplinary, Regulatory Action, 02/02/2005 The SEC's Complaint alleged that defendants Hunter. Southern Financial Group, Inc., Richard M. Wooten and Charles Dennis McKittrick raised at least $25 million through a fraudulent scheme involving the sale of short-term notes on behalf of UC Properties LLC; that defendants operated these note offerings as a Ponzi scheme. using funds raised from current note offerings to pay principal and interest to investors in prior offerings, and that at least $5 million was transferred to relief defendant Springdale Investments. Inc.; that Southern operated in violation of the net capital rule since at least October 2001. and that the firm's FOCUS reports and other books and records have been inaccurate since that time., 02/02/2005, SEC Litigation Releases - 2005 • SEC - SEC Violations (Insider Trading, Secunties Fraud) / ACT - Disciplinary, Regulatory Action, 12/22/2004 The SEC announced that US District Judge for the District of South Carolina, Charleston Division entered Final Judgments as to Defendants Southern Financial Group, Inc., Richard M Wooten, and Charles Dennis McKittrick. The Complaint alleged that defendants McKittrick, Gerald F. Hunter, Jr., Southern and Wooten raised at least $25 million through a fraudulent scheme involving the sale of short-term notes on behalf of UC Properties LLC: alleged that they operated these note offerings as a Ponzi scheme, using funds raised from current note offerings to pay principal and interest to investors in prior offerings, and that at least $5 million was transferred to relief defendant Springdale Investments. Inc.: further alleged that Southern operated in violation of the net capital rule since at least October 2001, and that the firm's FOCUS reports and other books and records have been inaccurate since that time., 12/22/2004, SEC Litigation Releases - 2004 • SEC - SEC Violations (Insider Trading, Securities Fraud) / ACT - Disciplinary. Regulatory Action. 06/19/2002 The SEC announced that US District Judge for the District of South Carolina. Charleston Division entered orders of preliminary injunction and other relief as to defendants Southern Financial Group, Inc. and Richard M. Wooten. The complaint alleged that defendants Southern, Wooten, Charles Dennis McKittrick and Gerald F. Hunter, Jr. raised at least $25 million through a fraudulent scheme involving the sale of short-term notes on behalf of UC Properties LLC; alleged that they operated these note offerings as a Ponzi scheme, using funds raised from current note offerings to pay principal and interest to investors in prior offerings, and that at least $5 million was transferred to relief defendant Springdale; further alleged that Southern operated in violation of the net capital rule since at least October 2001, and that the firm's FOCUS reports and other books and records have been inaccurate since that time., 06/19/2002, SEC Litigation Releases - 2002 • SEC - SEC Violations (Insider Trading, Securities Fraud) / CHG - Charged, 02/11/2008 Consistent MT the teems and coma oats ol your ROC Sul:salmi Agreement. the inlarrabon contend m this document is lc, alert purposes only and is na tote used lc, map:nesof deleonntrg an ondmiusts anipilly tot any cleat or any oMe, FORA pemsssiNs proposes Use' further agrees to had such mottos, and intamaton -n gramt conndence net to make us. memat cene• man M. atmetami purpcces, to relate t only to erchayees requmng SuCtilinaffnaten and rot to release or dachas* Ft to any other pany 1re Med mlormmon contanna n :nrs ',comment day Cr May na pedant> the mamma a arm referenced in TOW Mudd SDNY_OM_00058297 P.Pe 2 a9 CONFIDENTIAL - PURSUANT TO FED. R.QQN(F IDENTIAL DB-SONY-0021121 EFTA_00I68857 EFTA01296180 rdc DB12000P - Deutsche Bank Private Bank Alert Batch Date: 6/15/2017 Alert Date: 6/15/2017 Added to Monitoring: 06/15/2017 Organization: Southern Financial LLC Address: Ct;untiy VIRGIN ISLANDS. U.S. Tracking ID: KYC 1790655 Reporting ID: Alerted Entity it 1 of 4 Risk Priority: Critical Alert ID: 9476247.11602637.65444359 Southern Financial Group was later shut down by the Secunties and Exchange Commission after being charged in 2002 with a $25 million Ponzi scheme. The alleged fraud was unrelated to the Capstone bonds., 02711O008. Investment News Alert Notes Notes: Southern Financial Group Inc. . was charged with securities fraud . Source Information RDC URL: https://grid.rdc.com/wss/entity.html?entityld=30121228121b8b125d3f3d53eb346cc4 Source Name: RiskConnect. 06/14/2017 Entity URL: • httpiNwri.v.sec.govriitigationAitreleasesift19009.htm • http://www.sec.govflitigationnitreleasesAr19060.htm • http://Www.sec govridigationradmin/34-50966.htm • http://www.sec.govridigation/admini34-51207.htm • http://www.sec.gov/litigation/admin/34-51349.htm • httpJ/www.sec.govTitigationiitreleasesnr17574.htm • http://www.sec.govtlitigationriitreleasesrir17569.htm • http://www.sec.govriitigation/litreleasesAr17535.htm Sources: • Investment News, MEDIA Article,Headline:FINRA board members firm embroiled in muni fraud case: Jury awards plaintiff $1.2 million. http://global.factiva.conanidutarticle.asp?NAPC=S&AccessionNo=INVN000020080215e42b00009 • SEC Litigation Releases - 2004, SEC Litigation Releases - 2004, httplAmvw.sec.govriitigation/litreleasesilitrelarchiveAitarchive2004.shtml • SEC Litigation Releases - 2005. SEC Litigation Releases - 2005, http://www.sec.govilitigationtlitreleasesriitrelarchiveriitarchive2005.shtml • SEC Administrative Proceedings - 2005, SEC Administrative Proceedings - 2005. http://www.seagovAitigationradminiadminarchive/adminarc2005.shtml • SEC Litigation Releases - 2002. SEC Litigation Releases - 2002. http:/rinnwi.sec.govriitigationilitreleasesaitrelarchive/litarchive2002.shtml Consistent MT the teems and contieensol year ROC Sub:saber Agreement the rnhantsbon confined n the document rs to alert purposes only and is na to be used to, Nip:besot Oetermsney an ondequars eaproiRy ex any aide ocany oMer FORA perreassbb putpases User further agrees to had such melons, and mhymaton n brae* oonndence net to make use mewl ane• man 'Or akmageki suspect's to stale e only to errysayass requiting LUCA hornet 1. and rot to Yeas° or dscipsert to any other pany Treater' mtormatne Wise n :64 di:Carrera nay Cr may na pertan to no mama.* a ably referenced in your MINI SDNY_GM_00058298 P.Pe 3 Ci 9 CONFIDENTIAL - PURSUANT TO FED. R.QPN(E IDENTIAL DB-SONY-0021122 EFTA_OOI 68858 EFTA01296181 rdc DB12000P - Deutsche Bank Private Bank Batch Date: 6/15/2017 Added to Monitoring: 06/1512017 Alert Alert Date: 6/15/2017 Organization: Southern Financial LLC Address: :51Wily VIRGIN ISLANDS. U.S. Tracking ID: KYC 1790655 Reporting ID: Alerted Entity #: 2 of 4 Risk Priority: Critical Alert ID: 9476247.11602637.65374193 Entity Information Entity ID: Riskid: Entity Name: Alias: Address: Recent Event(s): 65374193 R2601172 Southern Financial Group SFG Greensboro. North Carolina. UNITED STATES • SEC - SEC Violations (Insider Trading, Securities Fraud) / ACT - Disciplinary, Regulatory Action, 0429/2008 The SEC announced that the USDC for the Middle District of North Carolina entered final judgments against defendants Elfindepan, S.A., Strategic Asset Funds, S.A., and Southern Financial Group for their roles in a high-yield investment scheme. Elfindepan, a defunct Costa Rican company, SAF, a defunct Panamanian company, and SFG, a de facto trust, were controlled by defendant Tracy Dunlap. The Commission alleging that Elfindepan. SFG, SAF, and others defrauded investors nationwide of approximately $30 million in connection with a high-yield investment scheme involving the unregistered offer and sale of Securities of Elfindepan, a purported Costa Rican financial company; alleges that Elfindepan made numerous materially false and misleading statements including promising investors that their investments were secure and would yield returns of as much as 40% to 50% per month., 04/29/2008, SEC Litigation Releases - 2008 Ccosatent nth the terms and con:Wand yam ROC Subic:bet Apref Met the infarrebon contained in this document is Ice atat purposes only ar4 is not lobe used to outposts of delerrrintro an ondaquars (*giblet for any anal of any Mei FCRA paternal*, purposes Usef further agrees to hold such manna, ar4 information n stt[tect conndence na to make use thereof erne, man Mr 46M01¢0.1 unseen to relate t only to employees requiring such ,hornet a. and rot to rename or dacbse Ft to any other poly 1realm ffitarlatieg, contained if INS 005ifithlt may Cr may not pone n to me indmdual a entity refecerced in your inquiry SDNY_GM_00058299 Page Ci 9 CONFIDENTIAL - PURSUANT TO FED. R.QPN(E IDENTIAL DB-SONY-0021123 EFTA_00I 68859 EFTA01296182 rdc DB12000P - Deutsche Bank Private Bank Alert Batch Date: 6/15/2017 Alert Date: 6/15/2017 Added to Monitoring: 06/15/2017 Organization: Southern Financial LLC Address: Cmuntiy VIRGIN ISLANDS. U.S. Tracking ID: KYC 1790655 Reporting ID: Alerted Entity # 2 of 4 Risk Priority: Critical Alert ID: 9476247.11602637.65374193 Event: • SEC - SEC Violations (Insider Trading, Securities Fraud)/ ACT - Disciplinary. Regulatory Action, 04/29/2008 The SEC announced that the USDC for the Middle District of North Carolina entered final judgments against defendants Elfindepan, S.A., Strategic Asset Funds. S.A., and Southern Financial Group for their roles in a high-yield investment scheme. Elfindepan, a defunct Costa Rican company, SAF, a defunct Panamanian company, and SFG, a de facto trust, were controlled by defendant Tracy Dunlap. The Commission alleging that Elfindepan, SFG. SAF, and others defrauded investors nationwide of approximately $30 million in connection with a high-yield investment scheme involving the unregistered otter and sale of Securities of Elfindepan, a purported Costa Rican financial company: alleges that Elfindepan made numerous materially false and misleading statements including promising investors that their investments were secure and would yield returns of as much as 40% to 50% per month., 04/29/2008, SEC Litigation Releases - 2008 • SEC - SEC Violations (Insider Trading, Securities Fraud) / ACT - Disciplinary. Regulatory Action. 09/12/2002 The Court in this case adjudged defendants Elfindepan, Southern Financial Group, and Tracy Calvin Dunlap, Jr., to be in contempt of court and ordered Dunlap incarcerated based on their refusal to obey court orders requiring them to produce documents and account for and repatriate investor funds.. 09/12/2002, SEC Litigation Releases - 2002 • SEC - SEC Violations (Insider Trading, Securities Fraud)! ACT - Disciplinary. Regulatory Action, 04/26/2001 On March 15, 2001, the U.S. District Court for the Middle District of North Carolina adjudged Elfindepan, S.A., Southern Financial Group and Tracy Calvin Dunlap, Jr. to be in civil contempt of court based on their refusal to obey court orders requiring them to produce documents, and account for and repatriate investor funds, related to their allegedly fraudulent investment schemes. They refused to comply as ordered based on their assertion of Dunlap's personal Fifth Amendment privilege against self-incrimination., 04/26/2001. SEC Litigation Releases - 2001 • SEC - SEC Violations (Insider Trading, Securities Fraud)! ACT - Disciplinary, Regulatory Action, 08/10/2000 The SEC filed a fraud case in the United States District Court for the Middle District of North Carolina against Elfindepan. S.A., Southern Financial Group, Tracy Calvin Dunlap. Jr. and Barry Lowe. The SEC complaint alleges that, the defendants defrauded investors nationwide in an apparent Ponzi or pyramid scheme in connection with the unregistered offer and sale of the securities of Elfindepan, alleges that in connection with these offerings, defendants knowingly and recklessly made, and caused others to make. numerous materially false and misleading statements to investors, defendants promised investors highly favorable returns on investments, without any reasonable basis for such claims, and falsely stated that the investments were secure, including false claims that Elfindepan investments were associated with the International Monetary Fund and the World Bank and also alleges that defendants knowingly or recklessly failed to disclose certain material facts to investors regarding Elfindepan., 08/10/2000, SEC Litigation Releases - 2000 Alert Notes Notes: Southern Financial Group was charged with securities fraud . Cceststerd was the tams and con:loan of yen ROC Subsabet Agmannt. the infarroba contained n this cicconerit is fcc alert purposes only and is net lobe used la purposes°, delermntra an inctsquefs altpitsityfot any cede or any ocher FORA perreassete ptepaces User tun na agrees to had soca material and inforrnancn .n vraest contdence na to make use thereat mei man 'or asmordel purposes, to relator* to erokyyees requiring suds informaten and 1131 to WOOS° or defelOSO rt to any Other pony Tr* Alen information oontaned e, :n4 clOtiOnfarit May a may not pecan to me neonatal a entity referenced in your altpAry SDNY_GM_00058300 ache $ Ci 9 CONFIDENTIAL - PURSUANT TO FED. R.WN(F IDENTIAL DB-SONY-0021124 EFTA_00I 68860 EFTA01296183 rdc DB12000P - Deutsche Bank Private Bank Alert Batch Date: 6/15/2017 Alert Date: 6/15/2017 Added to Monitoring: 06/15/2017 Organization: Southern Financial LLC Address: Cmurliy VIRGIN ISLANDS: U.S. Tracking ID: KYC 1790655 Reporting ID: Alerted Entity #: 2 of 4 Risk Priority: Critical Alert ID: 9476247.11602637.65374193 Source Information RDC URL: https://grid.rdc.conVwss/entity html9entityld=3dcbf500405acc025d3f3d53eb346cc4 Source Name: RiskConnect, 06/14/2017 Entity URL: • httpffiryww.sec.gov/litigationnitieleases/417723.htm • http://Www.sec.goy/litigationAitreleases/2008/120543.htm • http://www.sec.goy/litigation/litreleases/Ir16977.htm • Ottp/iWww.sec goidlitigation/litreleasesAr16649.htm • http:/Nvww.sec.goy/litigation/litreleasesAr16892.htm Sources: • SEC Litigation Releases -2002, SEC Litigation Releases - 2002, http:Thwww.sec.goy/litigationnitreleasesrlitrelarchrveAdarchnte2002.shtml • SEC Litigation Releases - 2008, SEC Litigation Releases - 2008, http:/Mww.sec.govAdigation/litieleases/litrelarchiveArtarchnte2008.shtml • SEC Litigation Releases - 2001. SEC Litigation Releases - 2001, http:/Avww.secgoyflitigationAitreleasesditrelarchiye/litarchive2001.shtml • SEC Litigation Releases - 2000, SEC Litigation Releases - 2000. http://www.sec.goyflitigationaitreleases/litrelarchiyeflitarchiye2000.shtml Uneaten, way the terms and coneitcosol yea, ROC Subsabei Agreement the ma:anal= eantaned in this document is Ice alert purposes only and is not lobe used to: mimeses a delermon; an oneatdoefs elaitalty Tor any carat Of any Wier FCRA perreasbee puntotes Use( fatter agrees to had sucn manna, and intoorabm m grata conterance net to make use thereof dna man Mr atth01¢0.1 purposes, to tOlatO Canty to footmen requiting suth mtormaton and r0110 01.4110 Or disclose R10 any COW parry Tr* Alert intortnanm contaned I, this taXufrOelt May a may not pcnan totome indrottual or entity reaterced in your inquiry SDNY_GM_00058301 °nee °I9 CONFIDENTIAL — PURSUANT TO FED. R.QPN(F IDENTIAL DB-SONY-0021125 EFTA_OOI 68861 EFTA01296184 rdc DB12000P - Deutsche Bank Private Bank Batch Date: 6/15/2017 Added to Monitoring: 06/15/2017 Alert Alert Date: 6/15/2017 Organization: Southern Financial LLC Address: :51:§tiry VIRGIN ISLANDS. U.S. Tracking ID: KYC 1790655 Reporting ID: Alerted Entity if: 3 of 4 Risk Priority: Critical Alert ID: 9476247.11602637.64747171 Entity Information Entity ID: Riskid: Entity Name: Alias: Address: Recent Event(s): 64747171 R22436125 Southern Financial Services Southern Financial Services Inc. Asheville. North Carolina. UNITED STATES • FRD - Fraud. Scams. Swindles / ASC - Associated with, Seen with, 02/04/2011 U.S. Attorney Anne M. Tompkins announced that. James W. "Bill" Bailey, Jr. had his initial appearance on three federal crirriinal counts. Securities Fraud. Mail Fraud and Filing False Tax Returns Charges, which was filed in a Bill of Information in U.S. District Court in Asheville on February 1, 2010. The counts against Bailey charge that he engaged in a "Ponzi' scheme from about January 2000 to December 2010 to defraud investors of more than $13 million. According to the Bill of Information, the defendant founded and operated Southern Financial Services Inc, 1031 Exchange Services, LLC and AVL Properties, LLC in Asheville. Court documents state that through Southern Financial Services Inc., Bailey fraudulently induced clients to deposit monies and purported to provide asset management, IRA accounts, and wills and trusts services., 02/04/2011, DOJ US Attorneys Offices Press Releases 2009 to 2012 • SEC - SEC Violations (Insider Trading, Securities Fraud) / ASC - Associated with, Seen with, 02/04/2011 U.S. Attorney Anne M. Tompkins announced that, James W. "Bill" Bailey. Jr. had his initial appearance on three federal criminal counts, Securities Fraud, Mail Fraud and Filing False Tax Returns Charges, which was filed in a Bill of Information in U.S. District Court in Asheville on February 1. 2010. The counts against Bailey charge that he engaged in a "Ponzi" scheme from about January 2000 to December 2010 to defraud investors of more than $13 million. According to the Bill of Information, the defendant founded and operated Southern Financial Services Inc, 1031 Exchange Services, LLC and AVL Properties, LLC in Asheville. Court documents state that through Southern Financial Services Inc.. Bailey fraudulently induced clients to deposit monies and purported to provide asset management, IRA accounts, and wills and trusts services., 02/04/2011, DOJ US Attorneys Offices Press Releases 2009 to 2012 • TAX - Tax Related Offenses / ASC - Associated with. Seen with, 02/04/2011 U.S. Attorney Anne M. Tompkins announced that, James W. "Bill" Bailey. Jr. had his initial appearance on three federal criminal counts, Securities Fraud, Mail Fraud and Filing False Tax Returns Charges, which was filed in a Bill of Information in U.S. District Court in Asheville on February 1, 2010. The counts against Bailey charge that he engaged in a "Ponzi" scheme from about January 2000 to December 2010 to defraud investors of more than $13 million. According to the Bill of Information, the defendant founded and operated Southern Financial Services Inc, 1031 Exchange Services. LLC and AVL Properties. LLC in Asheville. Court documents state that through Southern Financial Services Inc., Bailey fraudulently induced clients to deposit monies and purported to provide asset management. IRA accounts. and wills and trusts services., 02104/2011, DOJ US Attorneys Offices Press Releases 2009 to 2012 Canard we, the terms and condocetsol yea ROC Sub:a:bet Apreemec the alternation contaned m this document is Ice atat purposes only and is not lobe used to: purposes of delermntro an indaduars N g b.tty tot any atat 01 any other FORA pamotabb purpose; °antenna agrees to hold such material and inamanc.14 stictect conhaace. a:llamado use thereof me: man *a atm.:reel imposes, to relate [only to on:payees requiring such informatco and rot to wane or dectise rt to any other party Tre Alta intonnanon ennead in INS 005.07W4 may Cr may not porta n to no indrodual a nay aileron:cid in you! inquiry SDNY_GM_00058302 P°2e 7 el 9 CONFIDENTIAL — PURSUANT TO FED. R.QQN(F IDENTIAL DB-SONY-0021126 EFTA 00/68862 EFTA01296185 rdc DB12000P - Deutsche Bank Private Bank Alert Batch Date: 6/15/2017 Alert Date: 6/15/2017 Added to Monitoring: 06/15/2017 Organization: Southern Financial (IC Address: Countiy VIRGIN ISLANDS, U.S. Tracking ID: KYC 1790655 Reporting ID: Alerted Entity # 3 of 4 Risk Priority: Critical Alert ID: 9476247.11602637.64747171 Event: • FRD - Fraud, Scams, Swindles / ASC - Associated with, Seen with, 02/04/2011 U.S. Attorney Anne M. Tompkins announced that, James W. "Br Bailey, Jr. had his initial appearance on three federal criminal counts, Securities Fraud, Mail Fraud and Filing False Tax Retums Charges, which was filed in a Bill of Information in U.S. District Court in Asheville on February 1, 2010. The counts against Bailey charge that he engaged in a "Ponzi" scheme from about January 2000 to December 2010 to defraud investors of more than $13 million. According to the Bill of Information, the defendant founded and operated Southern Financial Services Inc, 1031 Exchange Services, LLC and AVL Properties, LLC in Asheville. Court documents state that through Southern Financial Services Inc., Bailey fraudulently induced clients to deposit monies and purported to provide asset management, IRA accounts, and wills and trusts services., 02/04/2011, DOJ US Attorneys Offices Press Releases 2009 to 2012 • SEC - SEC Violations (Insider Trading. Secunties Fraud) / ASC - Associated with, Seen with, 02/04/2011 U.S. Attorney Anne M. Tompkins announced that, James W. "BiW Bailey, Jr had his initial appearance on three federal criminal counts. Securities Fraud. Mail Fraud and Filing False Tax Returns Charges. which was filed in a Bill of Information in U.S. District Court in Asheville on February 1, 2010. The counts against Bailey charge that he engaged in a "Ponzi" scheme from about January 2000 to December 2010 to defraud investors of more than $13 million. According to the Bill of Information, the defendant founded and operated Southern Financial Services Inc, 1031 Exchange Services. LLC and AVL Properties. LLC in Asheville. Court documents state that through Southern Financial Services Inc., Bailey fraudulently induced clients to deposit monies and purported to provide asset management. IRA accounts, and wills and trusts services., 02/04/2011, DOJ US Attorneys Offices Press Releases 2009 to 2012 • TAX - Tax Related Offenses ASC - Associated with, Seen with, 02/042011 U.S. Attorney Anne M. Tompkins announced that, James W. "Bill' Bailey, Jr. had his initial appearance on three federal criminal counts, Securities Fraud, Mail Fraud and Filing False Tax Returns Charges, which was filed in a Bill of Information in U.S. District Court in Asheville on February 1, 2010. The counts against Bailey charge that he engaged in a "Ponzi" scheme from about January 2000 to December 2010 to defraud investors of more than $13 million. According to the Bill of Information, the defendant founded and operated Southern Financial Services Inc, 1031 Exchange Services, LLC and AVL Properties, LLC in Asheville. Court documents state that through Southern Financial Services Inc., Bailey fraudulently induced clients to deposit monies and purported to provide asset management, IRA accounts, and wills and trusts services.. 02/04/2011. DOJ US Attorneys Offices Press Releases 2009 to 2012 Alert Notes Notes: Southem Financial Services, aka Southern Financial Services Inc., for fraudulently inducing clients to deposit monies and purported to provide asset management IRA accounts, and wills and trusts services. Source Information RDC URL: https://grid.rdc.comtwss/entity.html?entityld=c9fe562c3e68e6326d3f3d63eb346cc4 Source Name: RislcConnect, 06/14/2017 Entity URL: http://www.justice.gov/usao/ncw/press/billbailey.html Sources: DOJ US Attorneys Offices Press Releases 2009 to 2012, DOJ US Attorneys Offices Press Releases 2009 to 2012, http:/Avww.justice.gov/usao/offices/index.html Consistent we, the tenws and conciacers al your ROC Sutaatee Apse-met the otrarrobcon contrive on the accomen1 is Ico alert papawsonly ar4 rs na lobe used ro, papoosesof oebernnow an POOSKItairS ellgibtity ke any peat *Parry Paw KRA peemisable putpases Ow twine agrees to had WO material and intonratton .n Wettest connOwee net to mast, use Mewl one, man tor asmotaea PorPOSes to relator* to rwegabytroWnktunag Warn miOnTsixn . and Mttorflaa" or " Cite any Wet Pan), Tee Mew proem-web contemn:toms apparent may a may nee portant'''. incinwuai a Petty repented in your Sperry SDNY_GI1/41_00058303 Pn e6Cig CONFIDENTIAL - PURSUANT TO FED. R.cONFIDENTIAL DB-SDNY-0021127 EFTA_00168863 EFTA01296186 rdc DB12000P - Deutsche Bank Private Bank Batch Date: 6/15/2017 Added to Monitoring: 06/1512017 Alert Date: Alert 6/15/2017 Organization: Address: Tracking ID: Southern Financial LLC C.://u/iiy VIRGIN ISLANDS. U.S. KYC 1790655 Reporting ID: Alerted Entity it 4 of 4 Risk Priority: Critical Alert ID: 9476247.11602637.63653446 Entity Information Entity ID: Riskid: Entity Name: Address: Recent Event(s): Event: Alert Notes 63653446 R22433111 Southern Financial Group Inc. Summerville • SEC - SEC Violations (Insider Trading, Securities Fraud)! ACC accused of running a so-called Ponzi scheme by soliciting cash to earlier investors, 12/15/2008. The Post and Courier (MCI) • SEC - SEC Violations (Insider Trading, Securities Fraud)! ACC accused of running a so-called Ponzi scheme by soliciting cash to earlier investors, 12/15/2008, The Post and Courier (MCI) - Accuse, 12/15/2008 from new investors to pay off redemptions - Accuse, 12/15/2008 from new investors to pay off redemptions Notes: Southern Financial Group Inc., was accused of running a so-called Ponzi scheme by soliciting cash from new investors to pay off redemptions to earlier investors. Source Information RDC URL: https://grid.rdc.conVwss/entity.html?enbtyld=cd06df1e138aac735d3f3d53eb346cc4 Source Name: RiskConnect. 06/14/2017 Sources: The Post and Courier (MCT), MEDIA Article,Headline:The Post and Courier. Charleston, S.C.. On Business column, http://global.factiva.coriVen/du/article.asp?NAPC=S&AccessionNo=KRTCN00020081216e4cf00001 Censotent woe the terms and conaeons of your ROC Sub:rater Agreemea. the rnfocrroban °ant:med.-Oho &cavern is foe Stet purposes only 54-4 rs not tote used for purposes of delanintra an ondsduarS ergibillyta any a10101 any Other FCRA pemvSSINe pury:06eS tiSer twine( *glee. to had such maternal an, informaten er rattiest conhdence. not to make use thereof otter Man SY asenadel purposes, to relater to* to ersakoyees mourned such mformaton and r01 to release or docks* rt to any odder party The information contaned n Mrs document Troy a may not paten to the incirnaual a entity referenced in your merry SDNY_GM_00058304 Pn e 9 a9 CONFIDENTIAL - PURSUANT TO FED. R.QPN(F IDENTIAL DB-SONY-0021128 EFTA_00I 68864 EFTA01296187