MONTGOMERY, ALABAMA-- C. Wilson Blaylock, District Attorney for the 32nd Judicial Circuit, Cullman County, Alabama; and Joseph Borg, Director of the Alabama Securities Commission (ASC) announced that Jerry Gibbs Carter, a Cullman County resident, was arrested in West Palm Beach Florida.
Carter was being sought in connection with indictments returned by the January, 2011 Cullman County Grand Jury charging him with six counts of Fraud in Connection with the Sale of Securities; and one count each of Sale of Unregistered Securities and Sale of Securities by an Unregistered Agent.
At the time the offenses were committed, all charges were classified as Class C felonies under Alabama law, carrying a maximum punishment of from one to ten years incarceration and not more than a $15,000 fine per charge. Carter remains in the Palm Beach County, Florida jail without bond awaiting extradition to Alabama.
The charges against Carter are the result of an ASC Enforcement Division investigation into complaints filed by three Alabama investors. The investigation revealed that Carter allegedly solicited investments to help fund a chain of car wash and auto maintenance facilities to be located throughout the United States.
In connection with the investigation, Maxine Gibbs Young, a Blount County, Alabama resident and Carter’s cousin, was indicted by the same Cullman County Grand Jury for one count of Fraud in Connection with the Sale of Securities.
Young surrendered to Cullman County Sheriff’s Department officials on Jan. 24, 2011 and was subsequently released on bond. No trial date for either Carter or Young has been set.
In addition to the U.S. Marshal’s Service Regional Fugitive Tasks Forces, The Commission received valuable assistance in this investigation from the Tennessee Attorney General’s Office and the West Palm Beach, Florida Police Department.
The ASC cautions potential investors to thoroughly scrutinize and research any investment opportunity or offer. Contact the ASC with inquiries concerning securities broker-dealers, agents, investment advisers, investment adviser representatives, financial planners, registration status of securities or debt management programs, to report suspected fraud or to obtain consumer information.
The ASC provides free investor education and fraud prevention materials in print, on our website and through educational presentations upon request.