Charges filed against Palm Desert based Rumbaugh Financial

SEC accusation of defrauding clients by deceit

PALM DESERT, Calif. - The Securities and Exchange Commission has charged Rumbaugh Financial and CEO Craig Rumbaugh with defrauding clients by deceit.  Rumbaugh Financial is located in Palm Desert at The Gardens on El Paseo.

The SEC accuses Rumbaugh of hiding the fact that he intended to personally profit from certain investments.

In 2018 the SEC filed an emergency civil injunctive action against companies operated by Susan Werth.  Rumbaugh had eight clients invest $3 million dollars in companies operated by Susan Werth in 2015 and 2016.  

Over $600,000 was lost and Rumbaugh failed to inform clients that he would be taking 5% commission on the investments.  

Rumbaugh also misled clients as to how much interest they would get back telling them they would get 5 to 10 % but in reality, getting 30% or more.  

Rumbaugh is accused of intending to secretly keep the difference.

The SEC seeks to get the gains returned plus interest and penalties.

Download the KESQ News Channel app on iTunes or Google Play for up-to-the-minute breaking news alerts & more

More: Today’s Top Stories

First Alert Forecast

More: I-Team investigations

Find us on Facebook: KESQ News Channel 3 

Follow us on Twitter for breaking news updates: @KESQ  

We’re on Instagram! @KESQ_News_Channel_3

Watch live newscasts

Noticias en español: Telemundo 15

comments powered by Disqus

First Alert Weather

Sponsor or Powered by

Recommended Stories

Most Popular Stories

Photo Galleries