Securities and Exchange Commission v. Bridge Premium Finance, LLC, Michael J. Turnock and William P. Sullivan, II, Defendants, 12-CV-6221 (D. Colo.).  On August 15, 2012, the SEC announced fraud charges and an emergency asset freeze against Bridge Premium Finance LLC, Michael J. Turnock, and William P. Sullivan, II, for perpetrating a Ponzi scheme.  Bridge Premium raised around $15.7 million by promising annual returns of up to 12 percent.  Turnock and Sullivan told investors that their funds would be used to make loans to small businesses to pay their up-front, annual commercial insurance premiums.  They told investors that Bridge Premium’s business was doing well, and that their funds were completely secure and safe.  In reality, Bridge Premium paid returns with funds from other investors because the business was not profitable and its commitments to note holders exceeded its assets.  The complaint charges violations of Sections 5(a), 5(c) and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.  On the SEC’s motion, the Court issued a Temporary Restraining Order, Asset Freeze, Other Equitable Relief, and Order Setting Preliminary Injunction Hearing.