Texas Stops Sex Offender’s Fraudulent Real Estate Deal

Sep 14

She was prosecuted for aggravated sexual assault of a child and is a registered sex offender.   She’s now accused of concealing her past while promoting fraudulent real estate investments.  Securities Commissioner Travis J. Iles filed an emergency cease and desist order to stop the scheme and protect Texans from harm. 
The order names Barbara Lanesa George, also known as Barbara Troutman, of White Settlement, Texas.  It alleges she is illegally advertising fraudulent fix-and-flip and long-term rental real estate investments that purport to pay generous returns – as much as eight or 10 percent over a term as short as six months. 
George is not, however, providing key information to investors.  For example, the order alleges she is not disclosing key risks, such as risks associated with the solvency of the issuer and factors that may impact its ability to satisfy its financial obligations.  She is also accused of concealing her criminal history – including circumstances surrounding her prosecution for aggravated sexual assault of a child under 14 years of age.  According to the order, investors are also not being told George is required to annually register in the Texas Sex Offender Registration Program, or that a Texas court required her to be confined in county jail on two separate occasions. 
“Today’s action demonstrates the necessity of transparency,” said Joe Rotunda, Texas Securities Board Enforcement Director.  “The law requires promoters to truthfully disclose all known material information – and in this case, information relating to the business repute and background of the investment professional.”  He encouraged investors to conduct thorough due diligence and investigate before investing in any online securities offering.
The order also names PB & Associates LLC, the issuer of the investments, and Patricia Coleman, the managing member of the issuer.  PB & Associates, Coleman and George are not registered to deal in securities in Texas and the investments have not been permitted or registered for sale in Texas. 
Contact – Joe Rotunda, TSSB Enforcement Director, at jrotunda@ssb.texas.gov or 512-305-8392 for additional information.