NEW YORK, March 2, 2009 (GLOBE NEWSWIRE) -- The Rosen Law Firm, P.A. announces that it is investigating potential state and federal securities claims against Sunwest Management, Inc., Canyon Creek Development, Inc. and Canyon Creek Financial, LLC in connection with allegations that these entities bilked investors of over $300 million in a sophisticated "Ponzi" scheme during the years from 2001 to 2008.
If you purchased an investment promising a tenancy-in-common interest in a retirement home developed and managed by Sunwest Management, Inc. and Canyon Creek Development, Inc. you have important legal rights that you should be aware of, as you may have an opportunity to recover losses in your investment. For information on your legal rights, you may contact Laurence Rosen, Esq. or Phillip Kim, Esq. toll free at 866-ROSENLEGAL (866-767-3653) or by e-mail at lrosen@rosenlegal.com or pkim@rosenlegal.com.
According to information provided by the SEC, Canyon Creek Financial, LLC and other brokers sold investors tenancy-in-common interests ("TIC") in several hundred retirement homes that were developed and managed by Sunwest Management, Inc. and Canyon Creek Development, Inc.
Investors in the TICs were told they were purchasing ownership interests in a specific retirement home that would generate enough profit to pay a 10 percent annual return, and that Sunwest had a history of never missing a payment. These representations allegedly misstated the true nature of the investment, and concealed the risk to investors from Sunwest's precarious financial position.
According to the SEC, investors' funds and operating revenue from all of the properties were improperly commingled into a single fund; Sunwest paid steady returns to investors not from successful management of a particular property as promised, but from cash generated in the operations of other facilities, from funds obtained in refinancings, from loans from related entities, and from funds raised through offerings to new investors.
As of January 2009, over 100 of the retirement homes in which investors believed their funds had been invested, had been placed in foreclosure, receivership or bankruptcy, resulting in a near-complete loss for many investors.
As of result of these unproven allegations concerning Sunwest, and Canyon Creek, the Rosen Law Firm is preparing a class action seeking to recover investors' losses.
To join the proposed class action or to obtain further information go to the website at http://www.rosenlegal.com or call Laurence Rosen, Esq. or Phillip Kim, Esq. toll-free at 866-767-3653 or e-mail lrosen@rosenlegal.com or pkim@rosenlegal.com.
The Rosen Law Firm represents investors throughout the nation, focusing its practice in securities class actions and shareholder derivative litigation.
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