Government documents released to press last Friday suggested that the United States Securities and Exchange Commission is probing Gulf Coast Funds Management. This investigation put Virginia governor candidate Terry McAuliffe in hot water.

McAuliffe owns GreenTech Automotive, sister company of Gulf Coast Funds Management. The SEC initiated an examination of the car company's cash-for-visas financing scheme. According to a memo issued by the United States Citizenship and Immigration Services, fraud might have been committed by the car company. The SEC had already released subpoenaed records from GreenTech's financing division.

"The SEC is looking into the Regional Center for possible security violations," stated the documents according to the USCIS memo. "Multiple articles posted online scrutinize the Regional Center and Principal for possible wrongdoings," one of the documents said.

The subpoena was issued by the Securities and Exchange last May when GreenTech sued Watchdog for US$85 million over counts of defamation.

The SEC did not provide any information regarding its investigation.