YARMOUTH — A Cape Cod educator who had investments with Levee Breaks Investment Group knew something was wrong when the monthly checks from the company stopped coming in April 2021.  

She said she had invested thousands in the real estate company, founded by Brian Serpone of Yarmouth, with the expectation that she would receive 10% annual interest, paid monthly, on her investment.

It turns out the promissory note she bought from LBI was an unregistered security, and LBI, based in Yarmouth, was not registered with the state’s Securities Division, as required by Massachusetts law. 

The broker-dealer employed by LBI, Dennis Serpone, Brian Serpone’s uncle, wasn’t registered with the state either. “His registration as a broker-dealer agent was terminated in 1998 following regulatory action,” according to a complaint filed against LBI by the state Oct. 15.