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NOVEMBER 30, 2009

SEC: Tampa Bay home restoration honcho Hurricane Katrina crook

The Securities and Exchange Commission accuses Tampa home restoration executive Brian M. Marshall of helping create a “fantasyland of fraud” to inflate his company’s stock after Hurricane Katrina.

Marshall became president of Home Solutions of America Inc. in 2006 after it bought Tampa’s Fireline Restoration Inc., a company he founded. Home Solutions’ Frank Fradella and Jeff Mattich were also charged.

Regulators accuse the men of faking millions of dollars in revenue and writing false press releases to raise the price of their NASDAQ-traded stock. The stock price eventually collapsed when the shenanigans were disclosed, the SEC said.

The SEC singled out Marshall, saying he booked more than $9 million of make-believe construction contracts with other companies he controlled. Companies founded by Marshall, including Initech Restoration Inc., filed Chapter 11 bankruptcy November 20.

"The company's financial results were largely fabricated and its public statements were intended to deceive," said Rose Romero, Director of the SEC's Fort Worth Regional Office. "Simply put, instead of rebuilding New Orleans and other hurricane-stricken areas, they constructed a fantasyland of fraud."

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Housing market news is the focus of the (Un)Real Estate blog. It offers an inside look at the Florida housing market and real estate news, with a focus on Tampa Bay. Its goal? Simple: To help you keep a roof over your head without losing your shirt.

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