Wichita, Kan Prosecutors for the Office of the Kansas Securities Commissioner filed charges against: Sutton MN, LLC; Real Development Corp.; Michael Elzufon and David Lundberg.
The case was filed as a result of an investigation stemming from a November 7, 2012 Cease and Desist Order. The new action alleges that those entities and individuals violated the Kansas Uniform Securities Act by selling promissory notes to raise capital for Wichita real estate projects without properly registering the securities. The action also includes allegations that the funds received from investors were to be used to repay the City of Wichita, when in fact those funds were instead diverted to pay back prior investors and for unrelated business expenses.
The Securities Commission urges anyone approached by these individuals regarding promissory notes, contact the Office of the Kansas Securities Commissioner at 785-296-3307.