SEC charges Tenn. adviser with fraud linked to bailout

Federal regulators have charged a Tennessee investment adviser with securities fraud.

Regulators said Wednesday he bilked clients out of at least $6.5 million in the first scheme using the government's $700 billion financial bailout program as a front to lure investments.

The Securities and Exchange Commission won a court order freezing the assets of Gordon Grigg of Nashville, Tenn., and his firm, ProTrust Management Inc.

The SEC says Grigg and ProTrust consented to a temporary restraining order, the asset freeze and an accounting of all funds raised. The agency is seeking unspecified restitution and fines against them; a hearing has been scheduled for Feb. 6.

Grigg's attorney, Mark Pickrell, said in a statement that his client agreed to the temporary restraining order and looks forward to a quick resolution.