SEC Obtains Emergency Asset Freeze Against Kenneth Courtright and TGC
On Wednesday, January 15, 2020, the Chicago Sun Times reported “A federal judge has frozen the assets of Kenneth Courtright, an Illinois man and the company he ran under the name “The Income Store” after the U.S. Securities and Exchange Commission (SEC) accused him of a “Ponzi-like scheme” that raised $75 million.” This man is named Kenneth Courtright. He founded the company and is the current chairman. Courtright was using the money from his company to overpay his mortgage and pay tuition for his kids’ private school. The Income Store is officially known as Todays Growth Consultant, Inc. (TGC).
As the Chicago Sun Times reports, “The SEC said Kenneth Courtright and his business raised at least $75 million from more than 500 investors since January 2017. They did so by striking deals in which the business offered a minimum guaranteed rate of return on revenue generated by websites the business built or acquired for the investors.” These websites made just $9 million in revenue over the past couple of years, while the fund has paid out $30 million to investors. He was using business funds to pay $3,000 per week to his mortgage.
Antonia Chion, Associate Director in the SEC’s Division of Enforcement, said that “TGC and Kenneth Courtright’s alleged fraud promised a guaranteed return when the company’s business model and financial condition could not possibly support it. To avoid further harm to investors and preserve the misused assets that have not already been dissipated, we have sought and obtained emergency relief.”
Further, “The SEC’s complaint, filed in federal court in Chicago on Dec. 27, 2019, and unsealed on Jan. 14, 2020, charges Kenneth Courtright and TGC with violations of the antifraud and registration provisions of the federal securities laws, and seeks certain emergency relief as well as permanent injunctions, return of ill-gotten gains with prejudgment interest, and civil penalties. On Dec. 30, 2019, the Court issued a temporary restraining order, ordered an asset freeze and other emergency relief, and appointed a receiver for TGC.”
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