SEC v. Clayton R. Thomas; and Personalized Healthcare Solution, LLC, No. LR-25717, Middle District of Tennessee (May 10, 2023) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25717 / May 10, 2023 Securities and Exchange Commission v. Clayton R. Thomas and Personalized Healthcare Solution, LLC, No. 3:23-cv-00459 (M.D. Tenn. filed May 9, 2023) SEC Charges Tennessee Resident and Company with Selling Fraudulent Promissory Notes The Securities and Exchange Commission today charged Brentwood, Tennessee resident Clayton R. Thomas and the now defunct entity he controlled, Personalized Healthcare Solution, LLC, with selling fraudulent promissory notes and misappropriating investor funds. The SEC's complaint, filed in the United States District Court for the Middle District of Tennessee, alleges that, from February until June 2019, Thomas and Personalized Healthcare Solution raised approximately $730,000 from a single investor, telling that investor that they would purchase certain medical devices and place the devices in medical offices to generate an investment return from usage fees. In reality, according to the complaint, Thomas and Personalized Healthcare Solution overstated the purchase price of the medical devices and fraudulently inflated the medical devices' anticipated returns. The complaint also states that Thomas knew that the investment would likely be far less profitable than what he told the investor based on prior experience with a different investor in which the medical devices produced little to no return. Finally, the SEC alleges that the investor lost substantially all of its original investments, and that Thomas misappropriated investor funds for his personal use by pocketing the difference between the actual cost of the medical devices and the amount that he represented to the investor that they would cost. The SEC's complaint charges Thomas and Personalized Healthcare Solution with violating Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations in the SEC's complaint, Thomas and Personalized Healthcare Solution each consented to the entry of an order permanently enjoining them from violating the charged provisions, and authorizing the court to determine at a later date the amount of disgorgement, prejudgment interest, and civil money penalties that Thomas will pay. The SEC's investigation was conducted by Justin Delfino and supervised by Peter Diskin and Justin Jeffries, all of the Atlanta Regional Office. The SEC's litigation will be led by Kristin Murnahan and supervised by Graham Loomis. The SEC appreciates the assistance of the United States Secret Service Nashville Field Office.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25717 / May 10, 2023 Securities and Exchange Commission v. Clayton R. Thomas and Personalized Healthcare Solution, LLC, No. 3:23-cv-00459 (M.D. Tenn. filed May 9, 2023) SEC Charges Tennessee Resident and Company with Selling Fraudulent Promissory Notes The Securities and Exchange Commission today charged Brentwood, Tennessee resident Clayton R. Thomas and the now defunct entity he controlled, Personalized Healthcare Solution, LLC, with selling fraudulent promissory notes and misappropriating investor funds. The SEC's complaint, filed in the United States District Court for the Middle District of Tennessee, alleges that, from February until June 2019, Thomas and Personalized Healthcare Solution raised approximately $730,000 from a single investor, telling that investor that they would purchase certain medical devices and place the devices in medical offices to generate an investment return from usage fees. In reality, according to the complaint, Thomas and Personalized Healthcare Solution overstated the purchase price of the medical devices and fraudulently inflated the medical devices' anticipated returns. The complaint also states that Thomas knew that the investment would likely be far less profitable than what he told the investor based on prior experience with a different investor in which the medical devices produced little to no return. Finally, the SEC alleges that the investor lost substantially all of its original investments, and that Thomas misappropriated investor funds for his personal use by pocketing the difference between the actual cost of the medical devices and the amount that he represented to the investor that they would cost. The SEC's complaint charges Thomas and Personalized Healthcare Solution with violating Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations in the SEC's complaint, Thomas and Personalized Healthcare Solution each consented to the entry of an order permanently enjoining them from violating the charged provisions, and authorizing the court to determine at a later date the amount of disgorgement, prejudgment interest, and civil money penalties that Thomas will pay. The SEC's investigation was conducted by Justin Delfino and supervised by Peter Diskin and Justin Jeffries, all of the Atlanta Regional Office. The SEC's litigation will be led by Kristin Murnahan and supervised by Graham Loomis. The SEC appreciates the assistance of the United States Secret Service Nashville Field Office.