The Securities and Exchange Commission (SEC) announced on Wednesday that it has charged the owner of an alternative investment fund with misappropriating close to $6 million in funds. The US regulator stated that Brent Borland had promised investors he would be using the cash to invest in an infrastructure project.

According to the SEC, Borland sold $21 million worth of promissory notes between 2014 - 2017. He claimed that the funds would be used to help build a new international airport in Placencia, an island resort off the coast of Belize.

The promissory notes were sold through a family office run by Borland, Borland Capital Group LLC, which claims to be active in ‘alternative investments.’ They were also sold through Belize Infrastructure Fund I, LLC, which states that it works in construction finance.

Fake Collateral

Investments were supposedly backed by real estate pledges that acted as collateral. The SEC noted in its statement that Borland had offered multiple investors the same pieces of real estate as collateral.

Instead of investing the funds in the Belize airport, the SEC claims Borland spent $6 million of the raised funds on paying off a mortgage for a Florida mansion, several luxury cars and private school fees for his children. He also spent $2.7 million on paying off credit card debt and $36,000 in beach-club membership fees.

Given the charmed life he has been leading over the past few years, Borland will be disappointed to know that the SEC is seeking to charge him with violating the antifraud provisions of the federal securities laws. The regulator also wants to pursue asset freezing, disgorgement, and civil penalties. Borland’s wife, Alana LaTorra Borland, has also been named as a relief defendant in the case.

Outside of the regulator’s purview, the US Attorney’s Office will also be pursuing criminal charges against Borland. The federal prosecutor announced that Borland had been arrested on Wednesday.