SEPTEMBER 20, 2006 - Posted at 3:47 p.m. CDT
LITTLE ROCK, AR - The Arkansas Securities Department today ordered a halt to the sale of investments by a group that would encourage people to make home equity loans and then invest the money in funds that allegedly did not produce the promised return.
The Avedis Group, Incorporated, a Freedom Team Mortgage Company and several other entities are named in the order.
The department said the Avedis Group organized meetings to advise people how to grow their assets. The meetings would take place in restaurants, churches and Avedis office in Searcy. Participants were advised to refinance their homes and invest the equity. Most of the 14 investors noted the department refinanced with Freedom Team Mortgage, investing $742,000.
The department says another person invested $352,000.
The department said investors were quoted rates of return of between 10 percent and 24 percent per year but that the investigation found no indication the rate of return was being met.