Monday, September 14, 2015

Promoters Promise "Indestructible Wealth” Get Sued By SEC

According to the SEC's complaint,  Online videos designed to attract investors to attend investment seminars were posted with such titles as “Finances God’s Way” or “Indestructible Wealth” which encouraged retirees to sell their existing securities holdings and invest in the created by the videos promoters.

Seal of the U.S. Securities and Exchange Commi...
The SEC claims that the videos falsely guaranteed promising returns, and that the defendants raised more than $14 million from over 100 investors for their real estate funds.

Having dealt with the SEC for decades, I know the penchant for overstatement and unique views of facts, but in this case there are allegedly videos. On the other hand, the defendants have not settled, which indicates that the SEC's claims may not be as clear as it claims.

The SEC is charging the individuals with  violations of Section 17(a) of the Securities Act of 1933 and the fraud provisions of the Securities Exchange Act of 1934 (Section 10b-5) as well as and Rule 10b-5.  The defendants have also been charged with violating the securities registration provisions of Section 5(a) and 5(c) of the Securities Act, as well as Sections 206(1) and (2) of the Investment Advisers Act of 1940.  The SEC is seeking financial penalties and disgorgement of ill-gotten gains as well as permanent injunctive relief.

The SEC's securities fraud complaint is online, as is their press release.

Involved in a securities fraud case or SEC investigation? The attorneys at Sallah Astarita & Cox include veteran securities litigators and former SEC Enforcement Attorneys, with decades of experience in securities investigations, arbitrations and litigation. Call 212-509-6544 or send an email to let us help you.

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