Wes Hickman/Kevin Bishop
-- U.S. Senator Lindsey Graham (R-South Carolina) has written to the Chairman of the Securities and Exchange Commission requesting their assistance in the investigation of Carolina Investors/HomeGold Financial. The letter was dated April 1, 2003.
“I would like to bring to your attention a troubling situation involving HomeGold Financial, Inc., a specialty financial company based in South Carolina and its subsidiary, Carolina Investors, Inc.” wrote Graham in a letter to William H. Donaldson, Chairman of the SEC. “Carolina Investors sold notes and subordinated debentures to the public and turned the proceeds over to HomeGold. According to reports filed with the SEC in recent years, Carolina Investors provided HomeGold with an estimated $267.5 million in capital.
“Without warning, Carolina Investors closed its offices on March 24 leaving more than eight thousand investors with no access to their accounts,” wrote Graham. “Earlier this week, HomeGold Financial filed for Chapter 11 bankruptcy protection. This situation had had a detrimental impact on the financial well-being of thousands of residents of my state, many of whom had their life savings invested with Carolina Investors.
“The South Carolina Attorney General has begun an investigation into this situation and I urge you to use all of the tools at your disposal to assist in this matter,” concluded Graham.
Graham noted investors should continue to contact the South Carolina Attorney Generals’ Securities Division with their complaint