SEC Obtains Judgment Against Inofin Management By: Brenda Hamilton Attorney
On May 28, 2014, the Securities and Exchange Commission ( “SEC”) announced that the U.S. District Court for the District of Massachusetts entered final judgment by consent against Inofin Inc.’s chief operating officer, Melissa George. Among other things, the judgment ordered George to pay a total of $177,431.69 in disgorgement of ill-gotten gains plus pre-judgment interest and a civil penalty.
The SEC’s complaint, which it filed on April 14, 2011, alleged that Inofin and its executives, Melissa George of Duxbury, Massachusetts, Michael Cuomo of Plymouth, Massachusetts and Kevin Mann, Sr. of Marshfield, Massachusetts, illegally raised at least $110 million from hundreds of investors in 25 states and the District of Columbia through the sale of unregistered notes. According to the SEC’s complaint, Inofin, along with Cuomo, Mann and George, materially misrepresented how the Company was using investor money and the Company’s financial performance. The SEC also charged two sales agents – David Affeldt and Thomas K. (Kevin) Keough – alleging that they promoted the offering and sale of Inofin’s unregistered securities. Keough’s wife Nancy Keough is named in the complaint as a relief defendant for the purposes of recovering proceeds she received as a result of the violations.
The final judgment to George imposed a permanent injunction against violations of Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), and Rule 10b-5 promulgated thereunder, and Sections 5 and 17(a) of the Securities Act of 1933 (the “Securities Act”).
The final judgment also orders George to pay disgorgement of $25,157.36, representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $2,274.33 for a total of $27,431.69 plus a civil penalty in the amount of $150,000.
The Commission previously obtained final judgments by consent as to Cuomo and Mann which included permanent injunctions prohibiting Cuomo and Mann from violating Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and Sections 5 and 17(a) of the Securities Act. The Commission also previously obtained a final judgment by consent as to Affeldt, which included a permanent injunction prohibiting him from violating Sections 15(a) of the Exchange Act and Sections 5(a) and 5(c) of the Securities Act. The SEC’s action remains pending against Inofin, and the Keoughs.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. For more information about going public and the rules and regulations affecting the use of Rule 144, Form 8K, crowdfunding, FINRA Rule 6490, Rule 506 private placement offerings and memorandums, Regulation A, Rule 504 offerings, SEC reporting requirements, SEC registration statements on Form S-1 , IPO’s, OTC Pink Sheet listings, Form 10 OTCBB and OTC Markets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, direct public offerings and direct public offerings please contact Hamilton and Associates at (561) 416-8956 or [email protected]. Please note that the prior results discussed herein do not guarantee similar outcomes.
Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
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