Investors swallowed the empty sales pitches of Barbra Alexander, former president of APS Funding and host of an internationally-syndicated radio show for entrepreneurs called MoneyDots.   They thought their money would be used to fund short-term loans secured by real estate.  Instead, Ms. Alexander and 2 officers of the Monterey, CA-based firm allegedly stole investor money to pay themselves $1.2 million and finance MoneyDots and other unrelated businesses unbeknownst to investors.  The SEC charged the trio with misappropriating $2.5 million of approximately $7 million they raised through the fraudulent sale of interests in two real estate investment funds.

Ms. Alexander, along with the firm's Secretary/CFO Beth Piña and VP Michael Swanson, lured 50 investors into 2 investment funds managed by APS Funding with claims that the funds would make short-term secured loans to homeowners and yield 12% annual returns.  Instead, $1.2 million were used for personal expenditures and $1.3 million was used to finance other businesses owned by Alexander and APS Funding, including MoneyDots.  Investors allegedly were sent monthly account statements reflecting fictitious profits and, in classic Ponzi scheme fashion, were paid purported returns with funds collected from that new investors.   [SEC PR 10-186, 10/7]