SEC v. James C. Mulholland, Jr. and Thomas Mulholland, Case No. 12-cv-14663 (E.D. Mich.).  On October 23, 2012, the SEC announced fraud charges against James Mulholland, Jr. and his brother Thomas Mulholland.  The case concerns the Mulhollands’ real estate business which bought and rented residential real estate.  The brothers raised money to fund their business from investors through demand notes.  Although their business had significant financial troubles, the Mulhollands continued to seek money from investors, raising about $2 million.  The brothers mislead investors by telling them that the business was profitable, that they would earn 7% on their investments, that the returns came from profits, and that the principal and interest were guaranteed.  The Mulhollands are charged with violating Sections 5(a), 5(c) and 17(a) of the Securities Act, Sections 10(b) and           15(a)(1) of the Exchange Act, and Rule 10b-5 thereunder.  The SEC seeks injunctive relief, civil monetary penalties, and disgorgement.