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Updated Apr 16, 2013 - 4:50 pm

2 ex-Arizona brokers accused of defrauding investors

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.

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