Cedar Park man pays restitution after alleged securities fraud

government actionThe Texas State Securities Board (TSSB) recently announced a plea agreement from Robert Patrick McGann of Cedar Park, Texas, who allegedly stole money from investors. McGann will pay full restitution of $141,234, receive seven years deferred adjudication and surrender his license to sell insurance in Texas.

McGann, who has never been registered to sell securities in Texas, took money from investors who purchased interests in promissory notes. Three of the investors were age 65 or older.

In January 2008, the Securities Commissioner found that McGann, as managing member of Secure Growth LLC (SGL), was selling an unregistered bond investment. The note promised to yield 15 percent a year for up to seven years, but McGann failed to disclosure his or SGL’s expertise, operating history, and whether SGL had the financial strength to pay investors. In September 2008, he was sanctioned for violations of the Texas Securities Act by selling similar, and unregistered, promissory notes.