SEC Charges South Florida Venture Capital Company In A $3 Million Securities Fraud Case
On September 13th, 2022, the Securities and Exchange Commission (SEC) released an update on securities fraud charges against five people and an investment entity believed to be part of a South Florida-based securities fraud scheme. Charges were filed against:
- Neil B. Swartz (principal);
- Timothy S. Hart (principal);
- Ted L. Romeo (sales agent);
- Vincent J. Caputo (sales agent); and
- Frank S. Dickerson (sales agent).
The investment entity in question is TBG Holdings Corporation. According to allegations from federal regulators, the men used the company as part of a $3 million securities fraud scheme. Here, our Miami investment fraud attorney discusses the allegations raised from the SEC.
SEC Complaint: Shares of MediXall Group, Inc. Were Unlawfully Sold to Investors
The federal securities fraud complaint was filed in United States District Court for the Southern District of Florida. Within the complaint, the SEC alleges that Neil B. Swartz and Timothy S. Hart were the principal agents behind an investment entity called TBG Holdings Corporation. They retained Ted L. Romeo, Vincent J. Caputo, and Frank S. Dickerson to work as sales representatives.
From early 2018 through early 2020, the defendants allegedly pushed shares of a health care industry management company called MediXall Group, Inc. on investors in South Florida and beyond. The sales agents were not registered representatives. As unregistered representatives, they were largely “cold calling” investors and using high pressure sales tactics. Investors were told that:
- Investment in shares of MediXall Group, Inc. would lead to safe, above-market returns; and
- They had a very limited amount of time to take advantage of the investment opportunity.
In total, the SEC alleges that the men engaged in TBG Holdings Corporation sold approximately $3 million worth of shares in MediXall Group, Inc. to around 200 different investors. The unregistered representatives were paid more than $500,000 in undisclosed commissions.
Sanctions Put in Place—But a Continuing Investigation
The SEC is still investigating the securities law violations involving TBG Holdings Corporation. Though, a number of different sanctions have already been put in place. TBG Holdings Corporation did not admit to or deny the allegations but agreed to pay a $100,000 civil fine. The company has also been barred from penny stock offerings for a period of five years.
The two principals—Neil B. Swartz and Timothy S. Hart—will each pay $50,000 fines and also be barred from penny stock offerings for five years. Mr. Rome will disgorge more than $450,000 of ill-gotten gains, Mr. Dickerson will disgorge more than $25,000 in ill-gotten gains. The SEC is still seeking penalties against Mr. Caputo.
Call Our Florida Securities Fraud Attorney Now
At Carlson & Associates, P.A., our Miami investment fraud lawyer is a strong and experienced advocate for investor rights. If you lost money because a broker, brokerage firm, or any other financial professional made material misrepresentations, we are here to help. Give us a call now or contact us online to set up a strictly private initial legal consultation.