(STL.News) The Securities and Exchange Commission Monday announced charges against an additional three individuals for illegally selling securities of 1 Global Capital, LLC in unregistered transactions to retail investors while acting as unregistered brokers. The SEC previously charged 1 Global, its owner, and others with operating a fraudulent scheme to misappropriate millions of dollars from investors. The SEC also charged 1 Global’s largest sales agent for various registration violations.
The SEC’s complaints alleged that the three individual defendants, Roger E. Dobrovodsky, Robert Todd Seth, and Matthew L. Walker, were among 1 Global’s top revenue producers, cumulatively selling more than $21 million in unregistered transactions to many retail investors. According to the complaints, the defendants marketed 1 Global securities to investors as a safe alternative to the stock market and reaped hundreds of thousands of dollars in commissions on their sales even though they were not registered as broker-dealers or associated with registered broker-dealers.
The SEC charged Dobrovodsky, Seth, and Walker with violations of the securities registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933 and the broker-dealer registration provisions of Section 15(a)(1) of the Securities Exchange Act of 1934. Dobrovodsky consented, without admitting or denying the allegations of the complaint, to an injunction, disgorgement of $317,690 with prejudgment interest of $32,038, and a $50,000 civil penalty. Seth consented, without admitting or denying the allegations of the complaint, to an injunction, with the amounts of disgorgement, prejudgment interest, and civil penalties to be determined by the court at a later date. In its litigated complaint against Walker, the SEC seeks an injunction and a civil penalty.
The SEC’s continuing investigation is being conducted by Gary Miller and Mark Dee, supervised by Elisha L. Frank, Fernando Torres, and Glenn Gordon. The litigation is being led by Robert K. Levenson and supervised by Andrew Schiff.