The SEC charged an entity and several associated individuals with misleading 100 investors - most of whom were seniors - resulting in $4.9 million in losses.
According to the Complaint, the SEC claimed that the entity and associated individuals misrepresented or omitted information to investors by:
- telling investors that the entity was raising money to support the research and development of radiation protection products that would yield "significant" returns when investor funds were actually being diverted to their personal bank accounts;
- selling through unregistered or barred broker-dealers; and
- making inaccurate statements in their solicitations and promotional materials regarding the entity's future profitability and intention to become a publicly-traded and reporting company.
The SEC requested that the Court order the entity and associated individuals to comply with (i) a temporary restraining order from further violating SEC regulations, (ii) any previously issued SEC Orders, (iii) a civil monetary penalty appropriate with the alleged violations, (iv) a disgorgement of any ill-gotten gains, and (v) the freezing of assets.
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