SEC Seeks Receiver for Chicago D
Securities regulators asked a federal judge Monday to appoint a receiver to sift through the remains of Chicago D&P; Inc., which is accused of running a real estate ruse that bilked millions of dollars from more than 200 investors.
At a hearing in San Francisco, government lawyers presented evidence that the daughter of Chicago D&P;’s president, Patricia Morgen, siphoned $70,000 from a company account last week after the SEC obtained a court order freezing the funds.
The SEC took the first step toward shutting down Chicago D&P; last week, alleging that Morgen and her son, Shalom Gibson, had turned the operation into a classic Ponzi scheme.
U.S. District Judge Charles Breyer indicated that he was likely to grant the SEC’s request today Neither Morgen nor Gibson appeared at Monday’s hearing. Chicago D&P; has offices in Emeryville, Calif., and Reno.
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