ALABAMA SECURITIES COMMISSION

770 WASHINGTON AVE, SUITE 570

MONTGOMERY, ALABAMA 36130-4700

TELEPHONE (334) 242-2984

1-800-222-1253

FAX (334) 242-0240

E-MAIL asc@asc.state.al.us

 

 

FOR IMMEDIATE RELEASE

         

MONTGOMERY, ALABAMA  (May 25, 2004) The Honorable Charles Baker, District Attorney, 14th Judicial Circuit, Walker County, Alabama and the Honorable Joseph P. Borg, Director, Alabama Securities Commission announced today that on May 17, 2004, John Mewbourn pled guilty to 6 counts of sale of unregistered securities before Judge James C. Brotherton, Circuit Court of Walker Co.   A sentencing hearing for Mewbourn took place today and testimony was given by parties of interest.  A final sentencing decision will be made at a later date.   

 

Mewbourn was previously convicted of Theft of Property I in the Circuit Court of Chilton Co. for a sale he made to a Chilton Co. resident. He was sentenced in January and is currently serving a split sentence of 10 years, to serve 12 months in the Chilton Co. jail.

 

John Mewbourn, formerly a pastor of Agape Christian Ministries, was involved in a  mortgage scam with Francis Eugene Blacketer of Springfield, Missouri who was indicted on 16 counts of selling securities in Alabama without being registered with the Alabama Securities Commission.  Francis Eugene Blacketer pled guilty and was sentenced to 25 years in the state penitentiary for 80 felony counts of fraud, by the Honorable Judge James C. Brotherton in a hearing on September 14, 2001.

 

Creative Funding was a loan scheme, where investors supplied the loan money for mortgages, which were to pay a high rate of return.  At the end of the contract, the borrower was supposed to make a single "balloon" payment that would return the investor's principal plus substantial interest.  Since the mortgages never existed, investors lost their money and it will probably never be recovered.

 

The Director of the Alabama Securities Commission (ASC) cautions potential investors to thoroughly check out any investment opportunity.  Contact ASC for inquiries regarding securities broker-dealers, agents, investment advisors, investment advisor representatives, financial planners, the registration status of securities, to report suspected fraud, or obtain consumer information: 

 

ALABAMA SECURITIES COMMISSION

770 WASHINGTON AVE, SUITE 570

MONTGOMERY, ALABAMA 36130-4700

 

Telephone: (334) 242-2984 or 1-800-222-1253. Fax: (334) 242-0240

Email:  asc@asc.state.al.us.  Website:  www.asc.state.al.us

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If you have questions or require more information contact:

Daniel G. Lord

Education and Public Affairs Manager