The Complaint further alleges that Gibbons told investors that their investments were risk-free and guaranteed. However, their investments were very risky because the Gibbons Companies engaged in little or no business, there was no guarantor, and Gibbons lacked sufficient liquid assets to repay the investors. The Complaint further alleges that Gibbons promised large returns on investments in the Gibbons Companies. For example, Gibbons told an investor that he would double or triple his money in a few years. However, Gibbons did not pay investors any return on investments in the Gibbons Companies.
Gibbons has a history of securities law violations.
Additionally, in 1994 the Illinois Secretary of State permanently barred Gibbons from offering or selling securities in Illinois, because of his involvement in a fraudulent investment scheme.