EFTA Document EFTA01416042

DB12000P - Deutsche Bank Private Bank 6/15/2017 Batch Date: Added to Monitoring: 06/15/2017 Organization: Southern Financial LLC Address: Tracking ID: KYC 1790655 Alerted Entity #: 1 of 4 Entity Information Risk Priority: Critical Entity ID: 65444359 Riskid: R22434574 Entity Name: Southern Financial Group Inc. Address: Charleston, South Carolina, UNITED STATES• • Columbia, South Carolina, UNITED STATES Recent Event(s): SEC - SEC Violations (Insider Trading, Securities Fraud) / CHG - Charged, 02/11/2008 Southern Financial Group was later shut down by the Securities and Exchange Commission after being charged in 2002 with a $25 million Ponzi scheme. The alleged fraud was unrelated to the Capstone bonds., 02/11/2008, Investment News • Country:VIRGIN ISLANDS, U.S. Reporting ID: Alert ID: 9476247.11602637.65444359 Alert Alert Date: 6/15/2017 Consistent with the terms and conditions of your RDC Subscriber Agreement, the information contained in this document is for alert purposes only and is not to be used for purposes of determining an individual's eligibility for any credit or any other FCRA permissible purposes. User further agrees to hold such material and information in strictest confidence, not to make use thereof other than for authorized purposes, to relate it only to employees requiring such information, and not to release or disclose it to any other party. The Alert information contained in this document may or may not pertain to the individual or entity referenced in your inquiry. Page 1 of 9 EFTA01416042 DB12000P - Deutsche Bank Private Bank 6/15/2017 Batch Date: Added to Monitoring: 06/15/2017 Organization: Southern Financial LLC Address: Tracking ID: KYC 1790655 Alerted Entity #: 1 of 4 • Risk Priority: Critical Country:VIRGIN ISLANDS, U.S. Reporting ID: 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, Securities 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. EFTA01416043 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 with the terms and conditions of your RDC Subscriber Agreement, the information contained in this document is for alert purposes only and is not to be used for purposes of determining an individual's eligibility for any credit or any other FCRA permissible purposes. User further agrees to hold such material and information in strictest confidence, not to make use thereof other than for authorized purposes, to relate it only to employees requiring such information, and not to release or disclose it to any other party. The Alert information contained in this document may or may not pertain to the individual or entity referenced in your inquiry. EFTA01416044 Page 2 of 9 Alert Alert Date: 6/15/2017 EFTA01416045 DB12000P - Deutsche Bank Private Bank 6/15/2017 Batch Date: Added to Monitoring: 06/15/2017 Organization: Southern Financial LLC Address: Tracking ID: KYC 1790655 Alerted Entity #: 1 of 4 Risk Priority: Critical Country:VIRGIN ISLANDS, U.S. Reporting ID: Alert ID: 9476247.11602637.65444359 Southern Financial Group was later shut down by the Securities and Exchange Commission after being charged in 2002 with a $25 million Ponzi scheme. The alleged fraud was unrelated to the Capstone bonds., 02/11/2008, 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=3012122812fb8b125d3f3d53eb346cc4 Source Name: RiskConnect, 06/14/2017 Entity URL: http://www.sec.gov/litigation/litreleases/1r19009.htm• • http://www.sec.gov/litigation/litreleases/1r19060.htm • http://www.sec.gov/litigation/admin/34-50966.htm • http://www.sec.gov/litigation/admin/34-51207.htm • http://www.sec.gov/litigation/admin/34-51349.htm • http://www.sec.gov/litigation/litreleases/1r17574.htm • http://www.sec.gov/litigation/litreleases/1r17569.htm • http://www.sec.gov/litigation/litreleases/1r17535.htm Sources: • Investment News, MEDIA Article,Headline:FINRA board member's firm embroiled in muni fraud case; Jury awards plaintiff $1.2 million, http://global.factiva.com/en/du/article.asp?- NAPC=S&AccessionNo=INVN000020080215e42b00009 • • • • SEC Litigation Releases - 2004, SEC Litigation Releases - 2004, http://www.sec.gov/litigation/litreleases/litrelarchive/litarchive2004.shtml SEC Litigation Releases - 2005, SEC Litigation Releases - 2005, http://www.sec.gov/litigation/litreleases/litrelarchive/litarchive2005.shtml SEC Administrative Proceedings - 2005, SEC Administrative Proceedings - 2005, http://www.sec.gov/litigation/admin/adminarchive/adminarc2005.shtml SEC Litigation Releases - 2002, SEC Litigation Releases - 2002, http://www.sec.gov/litigation/litreleases/litrelarchive/litarchive2002.shtml Alert Alert Date: EFTA01416046 6/15/2017 Consistent with the terms and conditions of your RDC Subscriber Agreement, the information contained in this document is for alert purposes only and is not to be used for purposes of determining an individual's eligibility for any credit or any other FCRA permissible purposes. User further agrees to hold such material and information in strictest confidence, not to make use thereof other than for authorized purposes, to relate it only to employees requiring such information, and not to release or disclose it to any other party. The Alert information contained in this document may or may not pertain to the individual or entity referenced in your inquiry. Page 3 of 9 EFTA01416047 DB12000P - Deutsche Bank Private Bank 6/15/2017 Batch Date: Added to Monitoring: 06/15/2017 Organization: Southern Financial LLC Address: Tracking ID: KYC 1790655 Alerted Entity #: 2 of 4 Entity Information Risk Priority: Critical Entity ID: 65374193 Riskid: R2601172 Entity Name: Southern Financial Group Alias: SFG Recent Event(s): SEC - SEC Violations (Insider Trading, Securities Fraud) / ACT - Disciplinary, Regulatory Action, 04/29/2008 Address: Greensboro, North Carolina, UNITED STATES • 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 Country:VIRGIN ISLANDS, U.S. Reporting ID: Alert ID: 9476247.11602637.65374193 Alert Alert Date: 6/15/2017 Consistent with the terms and conditions of your RDC Subscriber Agreement, the information contained in this document is for alert purposes only and is not to be used for purposes of determining an individual's eligibility for any credit or any other FCRA permissible purposes. User further agrees to hold such material and information in strictest confidence, not to make use thereof other than for authorized purposes, to relate it only to employees requiring such information, and not EFTA01416048 to release or disclose it to any other party. The Alert information contained in this document may or may not pertain to the individual or entity referenced in your inquiry. Page 4 of 9 EFTA01416049 DB12000P - Deutsche Bank Private Bank 6/15/2017 Batch Date: Added to Monitoring: 06/15/2017 Organization: Southern Financial LLC Address: Tracking ID: KYC 1790655 Alerted Entity #: 2 of 4 • Risk Priority: Critical Country:VIRGIN ISLANDS, U.S. Reporting ID: 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 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 • 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 EFTA01416050 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 . Alert Alert Date: 6/15/2017 Consistent with the terms and conditions of your RDC Subscriber Agreement, the information contained in this document is for alert purposes only and is not to be used for purposes of determining an individual's eligibility for any credit or any other FCRA permissible purposes. User further agrees to hold such material and information in strictest confidence, not to make use thereof other than for authorized purposes, to relate it only to employees requiring such information, and not to release or disclose it to any other party. The Alert information contained in this document may or may not pertain to the individual or entity referenced in your inquiry. Page 5 of 9 EFTA01416051 EFTA01416052 DB12000P - Deutsche Bank Private Bank 6/15/2017 Batch Date: Added to Monitoring: 06/15/2017 Organization: Southern Financial LLC Address: Tracking ID: KYC 1790655 Alerted Entity #: 2 of 4 Source Information Risk Priority: Critical Country:VIRGIN ISLANDS, U.S. Reporting ID: Alert ID: 9476247.11602637.65374193 RDC URL: https://grid.rdc.com/wss/entity.html?- entityld=3dcbf500405acc025d3f3d53eb346cc4 Source Name: RiskConnect, 06/14/2017 Entity URL: http://www.sec.gov/litigation/litreleases/1r17723.htm• • http://www.sec.gov/litigation/litreleases/2008/1r20543.htm • http://www.sec.gov/litigation/litreleases/1r16977.htm • http://www.sec.gov/litigation/litreleases/1r16649.htm • http://www.sec.gov/litigation/litreleases/1r16892.htm Sources: • • • • SEC Litigation Releases - 2002, SEC Litigation Releases - 2002, http://www.sec.gov/litigation/litreleases/litrelarchive/litarchive2002.shtml SEC Litigation Releases - 2008, SEC Litigation Releases - 2008, http://www.sec.gov/litigation/litreleases/litrelarchive/litarchive2008.shtml SEC Litigation Releases - 2001, SEC Litigation Releases - 2001, http://www.sec.gov/litigation/litreleases/litrelarchive/litarchive2001.shtml SEC Litigation Releases - 2000, SEC Litigation Releases - 2000, http://www.sec.gov/litigation/litreleases/litrelarchive/litarchive2000.shtml Alert Alert Date: 6/15/2017 Consistent with the terms and conditions of your RDC Subscriber Agreement, the information contained in this document is for alert purposes only and is not to be used for purposes of determining an individual's eligibility for any credit or any other FCRA permissible purposes. User further agrees to hold such material and information in strictest confidence, not to make use thereof other than for authorized purposes, to relate it only to employees requiring such information, and not to release or disclose it to any other party. The Alert information contained in this document may or may not pertain to the individual or entity referenced in your inquiry. Page 6 of 9 EFTA01416053 DB12000P - Deutsche Bank Private Bank 6/15/2017 Batch Date: Added to Monitoring: 06/15/2017 Organization: Southern Financial LLC Address: Tracking ID: KYC 1790655 Alerted Entity #: 3 of 4 Entity Information Risk Priority: Critical Entity ID: 64747171 Riskid: R22436125 Entity Name: Southern Financial Services Alias: Southern Financial Services Inc. Recent Event(s): 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 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 Address: Asheville, North Carolina, UNITED STATES • • 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 EFTA01416054 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., 02/04/2011, DOJ US Attorneys Offices Press Releases 2009 to 2012 Country:VIRGIN ISLANDS, U.S. Reporting ID: Alert ID: 9476247.11602637.64747171 Alert Alert Date: 6/15/2017 Consistent with the terms and conditions of your RDC Subscriber Agreement, the information contained in this document is for alert purposes only and is not to be used for purposes of determining an individual's eligibility for any credit or any other FCRA permissible purposes. User further agrees to hold such material and information in strictest confidence, not to make use thereof other than for authorized purposes, to relate it only to employees requiring such information, and not to release or disclose it to any other party. The Alert information contained in this document may or may not pertain to the individual or entity referenced in your inquiry. Page 7 of 9 EFTA01416055 DB12000P - Deutsche Bank Private Bank 6/15/2017 Batch Date: Added to Monitoring: 06/15/2017 Organization: Southern Financial LLC Address: Tracking ID: KYC 1790655 Alerted Entity #: 3 of 4 • Risk Priority: Critical Country:VIRGIN ISLANDS, U.S. Reporting ID: 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. "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 • 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, EFTA01416056 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., 02/04/2011, DOJ US Attorneys Offices Press Releases 2009 to 2012 Alert Notes Notes: Southern 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.com/wss/entity.html?- entityld=c9fe552c3e68e6325d3f3d53eb346cc4 Source Name: RiskConnect, 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://www.justice.gov/usao/offices/index.html Alert Alert Date: 6/15/2017 Consistent with the terms and conditions of your RDC Subscriber Agreement, the information contained in this document is for alert purposes only and is not to be used for purposes of determining an individual's eligibility for any credit or any other FCRA permissible purposes. User further agrees to hold such material and information in strictest confidence, not to make use thereof other than for authorized purposes, to relate it only to employees requiring such information, and not to release or disclose it to any other party. The Alert information contained in this document may or may not pertain to the individual or entity referenced in your inquiry. Page 8 of 9 EFTA01416057 DB12000P - Deutsche Bank Private Bank 6/15/2017 Batch Date: Added to Monitoring: 06/15/2017 Organization: Southern Financial LLC Address: Tracking ID: KYC 1790655 Alerted Entity #: 4 of 4 Entity Information Risk Priority: Critical Entity ID: 63653446 Riskid: R22433111 Entity Name: Southern Financial Group Inc. Address: Summerville Recent Event(s): SEC - SEC Violations (Insider Trading, Securities Fraud) / ACC - Accuse, 12/15/2008 accused of running a so-called Ponzi scheme by soliciting cash from new investors to pay off redemptions to earlier investors, 12/15/2008, The Post and Courier (MCT) • Event: SEC - SEC Violations (Insider Trading, Securities Fraud) / ACC - Accuse, 12/15/2008 accused of running a so-called Ponzi scheme by soliciting cash from new investors to pay off redemptions to earlier investors, 12/15/2008, The Post and Courier (MCT) • Alert Notes 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.com/wss/entity.html?- entityld=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.com/en/du/article.asp?- NAPC=S&AccessionNo=KRTCNO0020081216e4cf00001 Country:VIRGIN ISLANDS, U.S. Reporting ID: Alert ID: 9476247.11602637.63653446 Alert Alert Date: 6/15/2017 Consistent with the terms and conditions of your RDC Subscriber Agreement, the information contained in this document is for alert purposes only and is not to be used for purposes of determining an individual's eligibility for any credit or any other FCRA permissible purposes. User further agrees to hold such material and information in strictest confidence, not to make use thereof other than for authorized purposes, to relate it only to employees requiring such information, and not EFTA01416058 to release or disclose it to any other party. The Alert information contained in this document may or may not pertain to the individual or entity referenced in your inquiry. Page 9 of 9 EFTA01416059