SEC to seek $1.5m in disgorgement from co-conspirator of Ponzi scammer Renwick Haddow

Maria Nikolova

James Moore received at least $1.5 million in commissions, so the SEC requests this amount in disgorgement, plus prejudgment interest and civil penalties.

The Securities and Exchange Commission (SEC) has provided clarity on its course of action in the lawsuit targeting James Moore, a co-conspirator of Ponzi scammer Renwick Haddow.

A letter filed with the New York Southern District Court on November 26, 2019, includes the SEC’s computation of damages in the case against Moore. The SEC estimates that Moore and Universal Voicetech, Inc. helped to raise over $5 million from approximately 100 investors. Moore received at least $1.5 million in commissions. The Commission requests this latter amount in disgorgement, plus prejudgment interest and civil penalties.

The Commission has reached out to Moore several times with a proposed offer of settlement. However, the SEC has not heard back and as a result no settlement discussions have taken place. The regulator suggests a settlement conference (if possible) to discuss a potential bifurcated settlement.

Let’s recall that the Commission’s Complaint alleges that Moore and Universal Voicetech, Inc., a company Moore controlled, aided and abetted an offering fraud perpetrated by Renwick Haddow. The Complaint alleges that Haddow (who has now pleaded guilty), sold investors interests in a company known as “Bar Works,” which allegedly provided co-working spaces in converted restaurants and bars.

In reality, Haddow and others made material misrepresentations in marketing materials sent to investors about Bar Works while raising over $37 million from investors. Among other things, Bar Works’ website and offering memoranda touted the experience of its CEO Jonathan Black and omitted any mention of Haddow, when in fact Black was wholly fictitious and Haddow, who actually controlled Bar Works, had been sued for a previous illegal investment scheme by the Financial Conduct Authority in the U.K. Haddow subsequently misappropriated the vast majority these investor funds.

Moore and Universal Voicetech, Inc. aided and abetted Haddow in his fraudulent scheme by interfacing with and finding sales agents who solicited investments in Bar Works. Moore knew that the marketing materials he and his agents used to solicit investments in Bar Works omitted Haddow’s name and instead listed a fictitious name and background when describing Black, the company’s purported CEO. Moore received commissions from Bar Works that totaled at least $1.5 million.

No discovery has taken place as the case was stayed until the Court lifted the stay of discovery on October 21, 2019. The SEC anticipates that the principle discovery in this matter will involve the deposition of Moore.

Read this next

Digital Assets

AAX ranked world’s second largest spot exchange, only behind Binance

Crypto trading volumes experienced their first surge in activity since March as the majority of digital assets began their recovery from the recent grim price action, according to a new report by Cryptocompare.

Digital Assets

Bitpay teams up with Cardlytics to provide 15% cashback rewards

Crypto payment service provider Bitpay announced a partnership with Cardlytics Inc (NASDAQ:CDLX), which it says will offer more rewards for BitPay cardholders on its platform.

Digital Assets

BlackRock digs further into crypto with spot bitcoin private trust

BlackRock, the world’s largest asset manager with almost $8 trillion in AUM, has launched a spot bitcoin private trust for institutional clients in the United States.

Digital Assets

SEC fines Bloom Protocol, orders refund to BLT token purchasers

Blockchain startup Bloom, which raised $30 million in funds via an initial coin offering (ICO), has agreed to return the money to token purchasers and pay a $300,000 fine, the SEC announced.

Institutional FX

FX volume takes step back at Singapore Exchange in July

The Singapore Exchange (SGX), the country’s paramount exchange operator, has released its monthly volumes across its FX, derivatives and commodities segments for July 2022.

Market News

The Week Ahead: 12 August from David Madden, Market Analyst at Equiti Group

There was a spike in volatility last week when the US CPI report ticked down to 8.5% from 9.1%, missing the forecast of 8.7%. The announcement led to chatter the Fed might not carry out a 0.75% interest rate hike in September.

Digital Assets

Pomelo Pay adds crypto payments capabilities from TripleA

According to a June survey conducted by Deloitte, nearly 75% of retailers plan to accept either cryptocurrency or stablecoin payments within the next two years.

Executive Moves

Talos appoints “boss, mentor, and friend” Neal Pawar as strategic advisor

“Foundational technologies are needed for institutions to fully embrace this potential, however, and in my opinion Talos’s platform is steadily becoming the de facto industry standard for digital asset trading.”

Technology

Avelacom enhances Middle East connectivity amid new market trends

Avelacom found that smaller markets in the region were not sufficiently covered by third-party vendors.

<