(Bloomberg) -- The founder of a New York-based investment firm was charged with defrauding investors and using their money to fund a lavish lifestyle, including payments for a Florida mansion, multiple luxury cars and private school tuition.
Borland Capital Group LLC founder Brent Borland, 48, of Sag Harbor, was charged in a complaint unsealed in Manhattan federal court Wednesday with cheating investors who contributed more than $21 million for the construction of a Belize airport by falsely promising a high rate of return secured by property owned by the firm.
In reality, prosecutors said, some of the property didn't even exist, and Borland used the money for personal expenses. According to a civil suit filed by the U.S. Securities and Exchange Commission against Borland also filed Wednesday, he funneled nearly $6 million to a holding company he and his wife controlled, and used the money for personal items such as mortgage and tax payments for his $3.5 million Florida mansion, a membership at a "posh Florida beach club" and almost $10,000 worth of high-end watches.
Borland was arrested thus morning and is expected to appear in court later Wednesday. His attorney, David A. Gehn, didn't immediately respond to a message seeking comment.
To contact the reporter on this story: Chris Dolmetsch in New York State Supreme Court in Manhattan at cdolmetsch@bloomberg.net.
To contact the editors responsible for this story: David Glovin at dglovin@bloomberg.net, Paul Cox
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