FOR IMMEDIATE RELEASE
March 6, 2009
Contact Jason Moon: 517-335-1700

LANSING – The U.S. Securities and Exchange Commission (SEC) has announced that with the assistance of the Office of Financial and Insurance Regulation (OFIR), the federal agency obtained a court order freezing the assets of Diversified Lending Group (DLG), Applied Equities, Inc. (AEI), and their principal, Bruce Friedman. The SEC alleges that DLG, AEI, and Friedman are perpetrating an ongoing $216 million real estate investment fraud.

The SEC alleges that DLG, AEI, and Friedman raised at least $216 million from hundreds of investors nationwide, many of whom are senior citizens, by promising guaranteed high returns through real estate-related investments. Instead, the complaint alleges, Friedman diverted substantial investor money to ventures unrelated to real estate, and also misappropriated at least $17 million to support his lavish lifestyle, including purchases of a luxury home, cars, vacations, jewelry, and designer clothing for himself and an alleged girlfriend, who is named as a relief defendant.

In November, 2008, OFIR ordered DLG to cease and desist from selling unregistered securities products in Michigan. To view OFIR’s cease and desist order, visit: http://www.michigan.gov/documents/dleg/Diversified_Lending_Group_Inc._-_Order_to_Cease_and_Desist_264344_7.pdf

“OFIR’s examiners and investigators played an integral role in the SEC’s halting of this alleged $216 million real estate investment fraud,” OFIR Commissioner Ken Ross said. “Our securities staff will continue to work closely with our federal counterparts to ensure that Michigan consumers are protected from investment scams.”

To read the SEC’s litigation release, visit: http://www.sec.gov/litigation/litreleases/2009/lr20926.htm.

If Michigan investors have any questions about an investment firm, professional or product, please contact OFIR toll-free at (877) 999-6442 or online at www.michigan.gov/ofir

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