PHOENIX -- The federal Securities and Exchange Commission has accused two former Arizona brokers of stealing investments in a project to develop tankless water heaters.
The SEC alleges that Jeffrey Stebbins of Mesa and Corbin Jones of Gilbert diverted at least $1.8 million of investor money for their personal use and fraudulently obtained more than $6 million in stock for themselves.
Tankless water heaters are generally designed to instantly heat water as it passes through pipes rather than in large containers like traditional water heaters.
Authorities say Stebbins and Jones personally allegedly told investors that all of the money they raised would be used to develop the tankless water heater venture.
Instead, they allegedly diverted nearly 30 percent of the funds they raised to pay unrelated business expenses and lease luxury automobiles.