Federal investigation into New Hampshire developer who botched $21.5 million deal

Despite receiving three extensions and soliciting investors, Alexander was unable to close the deal in late April, by which time investigators from the New Hampshire Bureau of Securities Regulation had already begun examining her business dealings, the New Hampshire Bulletin reported.

Current court documents show that Alexander has also come under scrutiny by federal fraud investigators.

She asked a federal judge in New Hampshire to quash the subpoenas issued by the U.S. Securities and Exchange Commission (SEC) to release her bank records. But the judge denied her request on Wednesday.

The SEC, which is investigating possible violations of the federal securities laws, has subpoenaed records from four different banks to help investigators “follow the money” and identify investors or other parties involved, court records show.

The bank records relate to Alexander and several business entities, including LLCs, associated with her so-called “Legacy at Laconia” project and other ventures, according to SEC court filings that shed additional light on the conduct that drew suspicion from authorities.

Alexander received at least $450,000 from apparent investors for one or more of her projects between April 2023 and January 2024, and she may have used much of the money for purposes other than the intended investment, SEC filings show.

According to the documents, evidence suggests that in one case, Alexander used part of a $100,000 wire transfer from a supposed investor in one project to pay off a debt of over $46,000 that she owed to a supposed investor in another project.

SEC investigators found that Alexander had frequently transferred funds between various real estate company accounts and personal accounts over the past five years. According to the documents, she also made at least 10 personal cash withdrawals from business accounts totaling more than $200,000.

The SEC told the court that its investigators are looking for possible violations of the law prohibiting the use of fraudulent schemes in the sale of securities.

No state or federal charges have been filed against Alexander in these matters, and an SEC spokesman on Thursday declined to comment further or even acknowledge the agency's investigation.

Alexander asked the judge to quash the subpoenas, saying one bank account was used exclusively for non-business transactions, another for an unrelated business and a third was closed before 2019 and used for unrelated property management purposes. But investigators claimed they did not have to take Alexander's claims at face value.

“The SEC must inspect all bank records to trace the money, identify proceeds of fraudulent conduct, and identify individuals potentially guilty of wrongdoing or investors who may have sent money directly to Alexander,” the SEC wrote.

The judge agreed with this view and ordered the banks to comply with the subpoenas.

Alexander, who filed her own motion to quash the SEC's subpoenas without being represented by an attorney, told the Boston Globe on Thursday that she has since hired an attorney and is cooperating with the investigation.

“I don't think there will be any evidence of wrongdoing, but we're just going to move forward and cooperate,” she said. “We're doing what we have to do.”

Alexander said she would meet with Attorney General Jeffrey Levin of the Attorney General's Office on Friday. He declined to comment.

In the state proceedings, attorney S. Amy Spencer told investigators in February that she was in the process of representing Alexander. However, Spencer told investigators in March that she was no longer representing her, according to documents filed by the New Hampshire Secretary of State's office in Hillsborough County Superior Court North.

Since then, no attorney has come forward to represent Alexander in the state investigation, nor has any attorney come forward to represent her in the five lawsuits filed against her since May 2023, New Hampshire court records show.

Alexander, who lives in Manchester, referred questions about the investigation to a public relations professional, Scott Tranchemontagne of Montagne Powers. Tranchemontagne said he served as a spokesman for the Legacy at Laconia project when the project was still active. He declined to comment on other matters.

Alexander told the Globe she was in unfamiliar territory.

“I've gotten a speeding ticket once in my life, and this is the most trouble I've ever been in,” she said. “I don't understand any of this. I'm just going to cooperate and get my lawyer to work this out with me.”

Alexander's business dealings have been the subject of extensive reporting by the New Hampshire Bulletin since 2022. The reports included lawsuits from investors, three foreclosures on other properties, and her failure to pay property taxes on time.

Alexander said news reports had “twisted” the facts to portray her in an unfavorable light.

“I don’t trust the media anymore,” she said.

Steven Porter can be reached at Follow him @Reporterporter.

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