Plaintiffs Fourth Amended Petition - Texas State Securities Board

D. On February 7, 2008, Defendant Gray and his wife, Catherine H. Gray, formed
Defendant Hill Country Funding-Texas, listing its address as New Braunfels,
Texas, and thereafter, with the assistance of Defendant Rogers, sold investments
in bonded life settlement contracts issued directly by Defendant Hill Country
Funding and as an agent for ASA.
E. Two weeks later, on February 21, 2008, Defendant Gray and his wife, Catherine
H. Gray, formed Defendant Hill Country Funding-Nevada, listing its address as
Carson City, Nevada, and thereafter, with the assistance of Defendant Rogers,
sold bonded life settlement contracts issued directly by Defendant Hill Country
Funding and as an agent for ASA. Defendant HCF-Nevada was dissolved on
February 23, 2009 and was not reincorporated in Texas, nor did it merge into or
otherwise consolidate with Defendant Hill Country Funding-Texas.
F. On January 13, 2009, Defendants Gray and Rogers, together, with Catherine H.
Gray, David A. Gray, and Elizabeth O. Gray, formed Defendant Retirement
Value and began selling the re-sale life insurance policy program described
further herein.
G. On March 1, 2010, Defendants Gray and Rogers, together with Catherine H. Gray
and Carrie Morales, formed Absolute Betah, LLC, a Delaware Limited
Liability Company, to sell a form of their “securitized product” in the death
benefits of life insurance policies.
H. On March 30, 2010, Defendants Gray and Rogers directed the formation of
Special Acquisitions, Inc. by Morales, to take the place of Absolute Betah to sell
a “securitized product” in the death benefits of life insurance policies.
30. Defendants Gray and Rogers have shown clear intent and ability to form new companies
whenever necessary to continue selling their investment scheme. While there is currently
both an administrative order 2 and the May 28, 2010 Defendant Gray TI and Order
Appointing Receiver prohibiting Defendant Gray from continuing such practice, there are
no such orders directly prohibiting Defendant Rogers from continuing to form yet another
entity to sell the same or similar investment scheme as that of Defendants Retirement
Value or Hill Country Funding. The State is therefore seeking injunctive relief against
Defendant Rogers as set forth herein.
2 On March 29, 2010, the Securities Commissioner entered Emergency Cease and Desist Order ENF-10-CDO-1686
(“Securities Emergency Order”), styled In the Matter of Retirement Value et al. The order was issued against
Retirement Value, Gray and Collins.
State of Texas v. Retirement Value, LLC, et al.
Plaintiff’s Fourth Amended Verified Petition Page 8 of 57