The locations served are located at 400 West Fairmount Avenue and 1800 JFK Boulevard.
Authorities are also on location at 260 Blackburn Drive in Berwyn, Chester County.
The Securities and Exchange Commission contends that since at least 2006, 55-year-old Robert Stinson Jr. of Berwyn, Pa., in conjunction with his two companies and four purported hedge funds that he controls, has been defrauding investors and stealing their money.
Investigators say Stinson and the two companies he owns, Life's Good Inc. and Keystone State Capital Corporation, raised more than $16-million through 140 investors by making a "number of material misstatements and omissions" in regards to the progress of units sold in four Life's Good hedge funds: STABL, High Yield, Capital Growth, and IA Capital.
The companies reported to investors that the funds generated annual returns of 10 to 16-percent. Investors were told the growth originated from short-term commercial mortgage loans and through investment income from loan-fees, interest income, and operating income from properties acquired in foreclosure.
The SEC says instead, Stinson took investor money for his own personal use - transferring money to family and friends.
Stinson says that "every single dollar" invested in the STABL Fund is invested in real estate. He says the Life's Good Funds are safe and protected and that the returns are "fixed". However, the SEC says that 92-percent of the cash flow in defendants' bank accounts appears to be investor funds.
Of the $16-million in funds raised by Stinson, $12.1-million was raised between April 2009 and May 31, 2010. In May 2010 alone, $2.3-million was raised from investors.
Stinson has an extensive criminal history. He was previously charged with federal securities fraud in connection with a civil action filed in 1990. As a result of the charge, Stinson was ordered to $7,680 in disgorgement and prejudgment interest. That money was never paid.
He also has three federal convictions on fraud and/or larceny as well as two state charges on conspiracy and/or fraud.
The FBI is now attempting to gather documents and other materials from Life's Good Inc. and Keystone State Capital.
