This week, the SEC announced that a Final Judgment had been entered against the former President of a Waverly, Ohio chemical company. The judgment against Robert Walton Jr. orders the defendant to pay disgorgement in the amount of $506,471.86, prejudgment interest of $51,183.66 and a civil monetary penalty of $506,471.86. The defendant previously served as the President of Hadsell Chemical Processing.
The SEC complaint was filed against Walton on May 17, 2017. It alleged that Walton made material misrepresentations to 65 investors in relation to an offer and sale of roughly $12 million in promissory notes between April of 2012 and October of 2015. They also claimed that the defendant failed to register the offering with the SEC. The complaint alleged that Walton misrepresented that the investments were guaranteed and that the company had actually received valuable contracts from customers.
The defendant also claimed that the company was profitable. In reality, none of these claims were true. Additional details have been made available here.