The SEC alleges that Brent Borland sells more than $21 million of promissory notes to dozens of investors. Borland markets and sells the notes through two companies. The first company is Borland Capital Group LLC, which purports to be an active “alternative investment” firm. The second company, Belize Infrastructure Fund I, LLC, is supposedly in the business of construction finance. Apparently, “use of funds” proceeds are for bridge financing to develop an international airport in Placencia, Belize. With this in mind, the investors receive reassurances surrounding their investments through the collateralization of the underlying real estate assets.

The SEC complaint alleges Borland utilizes millions of dollars of investor funds for personal expenses and unrelated business expenses. Expenses include mortgage and property tax payments on his family’s Florida mansion, multiple luxury automobiles, private school tuition for his children. Additionally, other lavish expenses include $36,000 for his family’s beach club membership, and almost $2.7 million to pay off credit cards. Finally, Borland also deceives investors by pledging the identical collateral to multiple investors.

A Lack of Fiduciary Responsibility

“Investors should be able to count on the fact that their invested funds are used as promised,” said Robert J. Burson, Associate Regional Director of the SEC’s Chicago Regional Office. “We obtained an asset freeze and immediate injunctive relief in this case to protect victims from alleged false promises.”