SEC Claims Dead Money Manager Sold Fake Bonds

SECThe Securities and Exchange Commission is going after the assets of dead money manager Joel David Salinas, accusing him and his partner, Brian A. Bjork, of defrauding investors of $50 million. The SEC sued Salinas's estate Monday in the U.S. District Court for Southern Texas.

The 19-page complaint alleges that the men created two firms -- Select Asset Management and J. David Financial -- to sell fake bonds. Salinas, founder and president of J. David, and Bjork, chief investment officer of Select Asset Management, offered yields of as much as 9% on the investments. The fraud began in 2004 and ended only recently, according to the lawsuit.

Salinas died of an apparent suicide on July 17, according to the SEC, and left a note in which he took sole responsibility for the Ponzi scheme.

Texas authorities also took action against Bjork and Select Asset Management. The State Securities Board's inspections and compliance division has filed to revoke their state registrations, claiming that neither Bjork nor Salinas bought the bonds that Bjork sold to his clients.

Investors Include Basketball Coaches

A new twist in the story emerged Monday: At least two prominent basketball coaches lost money in the schemes.

Salinas was a founder of an elite high-school summer basketball program in Houston and a donor to college sports programs, according to a Bloomberg article, and his investors included college basketball coaches Lute Olson, former coach at the University of Arizona, and Scott Drew, coach at Baylor University. Several other coaches may have been defrauded as well.

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Securities and Exchange Commission
Office of Inspector General
100 F Street, NE
Washington, DC 20549-2736 June 4, 2010
Dear Mr. Kotz,
It has now been over a year since I made you and Mr. Khuzami aware of the AXA/MONY PricewaterhouseCoopers accounting fraud and Ponzi. As near as I can tell, you have not taken any action with regards to this complaint. From news reports I have noted that several of the individuals that were involved have been promoted and received new jobs with the very companies that they were supposed to oversee.
Should I just opine that you and Mr. Khuzami and Chairman Schapiro have in fact decided to take the politically correct position and continue to ignore the longest running Ponzi in American history? Surly you have a reason for your lack of action in not protecting the public. This is not an old issue, it is an ongoing Ponzi and I would like to have an answer. My children have a right to know where their $5,000,000 went!
I am preparing to update the information on my web sites that are mentioned in the attached letter to Chairman Schapiro. I do not want to interfere with any investigation work that you actually have in process with regard to this matter and request that you respond ASAP to this request for an explanation.
You may contact me at 817 946-8097 or .
R. Dale Abshire

August 02 2011 at 12:30 PM Report abuse rate up rate down Reply

SEC lawyers featured at

August 02 2011 at 12:28 PM Report abuse rate up rate down Reply

Brian Bjork next?

August 02 2011 at 12:06 PM Report abuse rate up rate down Reply

Suicide to avoid legal penalties...

August 02 2011 at 12:05 PM Report abuse rate up rate down Reply