SEC v. John Henderson; and Global Resources Leadership, LLC, No. LR-25405, Northern District of Illinois (June 1, 2022) — Press Release

SEC Obtains Final Judgments Against IIIinois Company and Its President for Affinity Fraud Targeting Christian Investors Litigation Release No. 25405 / June 1, 2022 Securities and Exchange Commission v. John Henderson, et al., No. 1:19-civ-06183 (N.D. Ill., filed Sept. 16, 2019) On May 26, 2022, the U.S. District Court for the Northern District of Illinois entered a final judgment against John Henderson, of Naperville, Illinois, who had already been found liable for making false and misleading statements in connection with securities offerings targeting Christian investors, and against his company, Global Resources Leadership, LLC ("GRL"), against which default had already been entered. The SEC initially charged Henderson and GRL in September 2019, and, after learning of additional securities law violations by Henderson and GRL, filed an amended complaint on December 3, 2020. The SEC's amended complaint alleged that between December 2016 and June 2017, Henderson and GRL conducted two unregistered and fraudulent securities offerings, telling investors their funds would be used to obtain financial instruments necessary to broker Nigerian crude oil transactions, from which significant investor profits would be generated and paid in short periods of time. In fact, as set out in the amended complaint, Henderson spent nearly all of the $60,000 raised on his personal expenses and vacations. On March 17, 2022, the Court granted the SEC's motion for summary judgment on all of its claims against Henderson, finding that Henderson's offers and sales of securities were "based on knowing lies as a part of a fraudulent scheme to obtain money that Henderson immediately used on himself not to obtain financing instruments to facilitate crude oil transactions as he claimed." On May 26, 2022, the Court entered a final judgment permanently enjoining Henderson and GRL from violating Sections 5 and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and permanently enjoining both from participating in the issuance, purchase, offer, or sale of any security, except for purchasing or selling securities for Henderson's own personal accounts. The Court also ordered Henderson and GRL to pay, on a joint and several basis, $50,000 in disgorgement of ill-gotten gains plus $10,997 in prejudgment interest thereon. Henderson was also ordered to pay a civil penalty of $103,591. The SEC's litigation was led by Nick Margida, with assistance from Christina Adams, Robert Moye, and Margaret Vizzi, and was supervised by Olivia S. Choe. The SEC's investigation was conducted by Christina Adams and supervised by Fuad Rana. In November 2019, the SEC's Office of Investor Education and Advocacy, in conjunction with the Division of Enforcement's Retail Strategy Task Force, issued an Investor Alert about affinity frauds, which includes steps investors can take to protect themselves from similar investment frauds.

SEC Obtains Final Judgments Against IIIinois Company and Its President for Affinity Fraud Targeting Christian Investors Litigation Release No. 25405 / June 1, 2022 Securities and Exchange Commission v. John Henderson, et al., No. 1:19-civ-06183 (N.D. Ill., filed Sept. 16, 2019) On May 26, 2022, the U.S. District Court for the Northern District of Illinois entered a final judgment against John Henderson, of Naperville, Illinois, who had already been found liable for making false and misleading statements in connection with securities offerings targeting Christian investors, and against his company, Global Resources Leadership, LLC ("GRL"), against which default had already been entered. The SEC initially charged Henderson and GRL in September 2019, and, after learning of additional securities law violations by Henderson and GRL, filed an amended complaint on December 3, 2020. The SEC's amended complaint alleged that between December 2016 and June 2017, Henderson and GRL conducted two unregistered and fraudulent securities offerings, telling investors their funds would be used to obtain financial instruments necessary to broker Nigerian crude oil transactions, from which significant investor profits would be generated and paid in short periods of time. In fact, as set out in the amended complaint, Henderson spent nearly all of the $60,000 raised on his personal expenses and vacations. On March 17, 2022, the Court granted the SEC's motion for summary judgment on all of its claims against Henderson, finding that Henderson's offers and sales of securities were "based on knowing lies as a part of a fraudulent scheme to obtain money that Henderson immediately used on himself not to obtain financing instruments to facilitate crude oil transactions as he claimed." On May 26, 2022, the Court entered a final judgment permanently enjoining Henderson and GRL from violating Sections 5 and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and permanently enjoining both from participating in the issuance, purchase, offer, or sale of any security, except for purchasing or selling securities for Henderson's own personal accounts. The Court also ordered Henderson and GRL to pay, on a joint and several basis, $50,000 in disgorgement of ill-gotten gains plus $10,997 in prejudgment interest thereon. Henderson was also ordered to pay a civil penalty of $103,591. The SEC's litigation was led by Nick Margida, with assistance from Christina Adams, Robert Moye, and Margaret Vizzi, and was supervised by Olivia S. Choe. The SEC's investigation was conducted by Christina Adams and supervised by Fuad Rana. In November 2019, the SEC's Office of Investor Education and Advocacy, in conjunction with the Division of Enforcement's Retail Strategy Task Force, issued an Investor Alert about affinity frauds, which includes steps investors can take to protect themselves from similar investment frauds.