SEC accuses New Mexico real estate executive of $80M Ponzi scheme that bilked 600 investors

New Mexico real estate exec accused of $80M scheme

ALBUQUERQUE, N.M. — The Securities and Exchange Commission has accused a prominent Albuquerque real estate executive of fraud and selling unregistered securities in an $80 million Ponzi scheme.

The SEC’s lawsuit alleges Douglas Vaughan defrauded about 600 investors, exploiting his reputation as a pillar of the business community.

The federal agency also has obtained a temporary court order to stop the sales and freeze Vaughan’s assets and those of two companies he founded.

Vaughan and his Vaughan Company Realtors filed for Chapter 11 bankruptcy protection last month.

The SEC seeks unspecified financial penalties and a court order that Vaughan give up gains from the alleged scheme.

Vaughan’s attorney did not immediately return a call seeking comment.