The Securities & Exchange Commission (SEC) has accused Jody Dunn, of Corinth, Texas, of investment fraud. Officials allege that Dunn took $3.4 million from over 7,000 investors in the deaf community. Dunn faces fraud charges in the lawsuit.
Dunn allegedly offered investments in life insurance policies purchased from the elderly and terminally ill. He is said to have promised high returns on the investments, but those returns never materialized. Instead, officials have said that none of the money taken in was actually invested in life insurance. Instead, Dunn allegedly used $353,000 to pay his mortgage and other living expenses. Officials say the rest was then put into offshore accounts.
In this example of affinity fraud, Dunn, who is deaf himself, allegedly chose his investment fraud victims from among the deaf community.