Massachusetts officials charged Croft School CEO Scott Given for selling deceptive bonds to parents that lacked the promised security.

Securities Fraud Charges

The Massachusetts Securities Division has filed charges against Scott Given, the founder and CEO of Croft School. Authorities allege that Given engaged in fraudulent activities by marketing 'secured' bonds to parents of students at the institution.

The investigation reveals that while these financial instruments were sold under the premise of being protected investments, the security mechanisms described to investors did not exist. This discrepancy led parents to believe their capital was shielded from loss, a claim investigators say was entirely false.

Details of the Investment Scheme

The scheme targeted the parent community of the Croft School, leveraging the existing relationship between the educational institution and its families. Investors were led to believe that their funds were backed by specific assets or guarantees, providing a false sense of financial safety.

According to the Securities Division, the following elements characterized the deceptive sales:

• Misrepresentation of Risk: Parents were told the bonds were low-risk or secured.
• Lack of Collateral: The actual assets intended to secure the bonds were nonexistent or insufficient.
• Targeted Solicitation: The offerings were marketed directly to the school's internal community.

Legal Implications and Investigation

The charges come as part of a broader effort by state regulators to protect individual investors from predatory financial practices. Investigators are working to determine the total amount of funds misappropriated through these bond sales and the number of families affected by the deception.

Legal proceedings against Given are expected to follow the formal filing of these charges. The Securities Division has emphasized that such actions are taken to ensure transparency and honesty in all financial transactions offered to the public, particularly those involving specialized educational institutions.