Three Indicted for Fraud in "3 Hebrew Boys" Case

(Columbia) - The Attorney General's Office announced Tuesday that three men who were arrested in June on securities fraud have been indicted by a state grand jury.

Prosecutors say the venture promised a $2,625 investment could make up to $100,000 in 16 months or less.

Authorities charged 45-year-old Tony B. Pough, 49-year-old Timothy McQueen and 43-year-old Joseph Brunson, each from Columbia, with selling unregistered securities. Officials say the punishment carries up to ten years in prison.

Officers say the investigation is ongoing, and more charges could be filed.

In May, the Attorney General's Office won a restraining order that prohibited Capital Consortium Group, Inc. from working with "3 Hebrew Boys, LLC" the company operated by the three men. The restraining order stopped the men from liquidating or moving $17 million in funds from accounts with First Citizens Bank in Columbia, according to officials.

Officials say in the initial complaint filed on May 21, McMaster said the three men sold securities in and from the State of South Carolina without properly registering them. McMaster says none of the funds raised were ever invested as they were originally advertised to investors. He says bank records show the men kept the money for themselves.

The Attorney General said the men targeted churches and military bases in the area, and recruited members to attend large meetings where they promised investment opportunities. Documents say the men would promise the money would be converted to foreign currency. Investigators say the men set up a number of different securities that were never actually registered with the Securities Division of the Attorney General's Office. Futhermore, authorities say none of the men have ever been registered with the office to sell securities in or from the state.