The SEC filed a civil suit alleging...

The SEC filed a civil suit alleging Towers Financial Corp. and its subsidiary Towers Credit Corp. sold more than $20 million of unregistered notes between 1986 and 1988. A complaint filed with the U.S. District Court in New York said the notes were offered to more than 400 investors, many of whom were “financially unsophisticated and poorly situated to obtain or evaluate information about the investment quality of the notes.” Among other things, the SEC asked the court to require Towers to offer purchasers the chance to get their money back. Unregistered notes are those that have not been filed with the SEC and therefore cannot be sold to the public.