SEC Charges CEO with Misappropriating Investor Funds

The SEC charged a CEO with misappropriating investor funds and making numerous false statements while raising at least $1.5 million through stock offerings, notes and debentures. The CEO was not registered as, nor associated with, a broker-dealer. The SEC found that in some instances, sales were made by the CEO directly. In others, the CEO hired agents who were not associated with broker-dealers.