PHM Brands Hit With Fraud Suit Over Investment Terms Agreement

PHM Brands LLC and its top executives misled investors that they would be given seats on the company’s board of directors and paid interest on their investments, a complaint filed in federal court alleges.

An investor claims the grain production company and CEOs John Mason and Bryan Ledgerwood violated federal and state securities laws and repeatedly deceived him that he would be elected to the company’s board and receive interest in exchange for a $1 million payment. Those promises “were false when made or at the very least made with a reckless disregard for the truth,” Robert Scharf alleges in ...