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Vestin Realty Mortgage I, Inc Message Board

  • wmbelg wmbelg Dec 31, 2007 3:04 PM Flag

    Reason for the poor performance - SHUSTEK painted a too positive picture


    On September 27, the Commission instituted administrative and cease-
    and-desist proceedings against Vestin Capital, Inc. (Vestin Capital),
    Vestin Mortgage, Inc. (Vestin Mortgage), and Michael V. Shustek
    (Shustek). Vestin Capital, a registered broker-dealer, and Vestin
    Mortgage are both headquartered in Las Vegas, Nevada. Shustek, age 47,
    of Las Vegas, during the relevant period, was the owner and
    controlling person of Vestin Capital and Vestin Mortgage.

    The Order finds that, from July 2002 through August 2003 and from
    November 2003 through November 2004, Shustek, Vestin Capital, and
    Vestin Mortgage offered and sold units in two mortgage funds managed
    by Shustek and Vestin Mortgage. They sold units in the funds through
    sales seminars at which they provided prospective investors with
    information regarding the funds. The information provided to
    prospective investors included the prior performance of one of the
    funds being offered and of another related mortgage fund. The
    information, however, materially overstated the funds' prior

    The Commission simultaneously accepted Shustek, Vestin Capital and
    Vestin Mortgage's Offer of Settlement wherein, without admitting or
    denying the Commission's findings: (1) Shustek, Vestin Capital, and
    Vestin Mortgage agreed to cease and desist from violating Sections
    17(a)(2) and (3) of the Securities Act of 1933; (2) Shustek agreed to
    pay a civil penalty of $100,000; (3) Shustek agreed to be suspended
    from association with any broker or dealer for a period of six months;
    and (4) Shustek, Vestin Capital, and Vestin Mortgage agreed to comply
    with certain undertakings, including the retention of an independent
    consultant to monitor Vestin's Capital's sales materials and the
    development and implementation of procedures by Vestin Mortgage to
    ensure complete and accurate information is provided to investors
    regarding past performance. [In the Matter of Vestin Capital, Inc.,
    Vestin Mortgage, Inc. and Michael V. Shustek. (Rels. 33-8744; 34-
    54524; File No. 3-12440)

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