Welcome to the website established by Receiver Lawrence J. Warfield. The purpose of this website is to inform victims and other interested parties of the status of the receivership and provide a means of communication. This site was redesigned June 2011. If you wish to view the Archived website, you may do so here.

This page is a source of information for investors who placed money with the business operating as Mid America Foundation.

Summary of SEC Complaint (December 26, 2001)

1. Mid-America and its Executive Director, Robert Dillie, have swindled hundreds of typically elderly investors throughout the country of an estimated $54 million. Preying upon the public's laudable desire to contribute to charities, the Defendants claimed to sell an investment called a "charitable gift annuity" ("CGA"), that was to pay the investor a guaranteed rate of return, with the principal paid to a designated charity at the investor's death.

2. In reality, instead of using the funds raised during the past four years to purchase securities and produce income, Dillie used much of the money raised from the sale of CGAs to make "ponzi" payments to investors and to support his extravagant lifestyle and gambling habit.

3. In the sales literature used to promote his fraudulent scheme, Dillie touted the safety, security and tax benefits of the CGAs as well as the charitable aspects of the investment. The safety aspect of the investment was repeatedly underscored by representations that Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch"), acted as manager of the CGA assets.

4. The claims that Merrill Lynch managed the investment were completely false.

5. The scheme is now collapsing, and Dillie has advised clients that Mid-America has disbanded and "due to inadequate assets is unable to make any further distributions of annuity payments."

6. By reason of these activities, the Defendants have violated Section 17(a) of the Securities Act [15 U.S.C. § 77q(a)] and Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 [17 C.F.R. § 240.10b-5] thereunder. The Commission, in the interest of protecting the public from any further fraudulent activity, brings this action against Dillie and Mid-America seeking temporary, preliminary and permanent injunctive relief, disgorgement of illicit profits, plus accrued prejudgment interest and a civil monetary penalty. The Commission also seeks an asset freeze against Dillie, Mid-America and Mid-America Financial, an entity to which Dillie diverted investor funds, an accounting and other incidental relief, as well as the appointment of a receiver to take possession of Dillie's assets and control of Mid-America and Mid-America Financial so that investor assets will not be further dissipated.