2019-12-11 sec-litreleases litigation_release 66 KB 2,418 chars

SEC v. Nanotech Engineering, Inc.; Michael James Sweaney; David Sweaney; and Jeffery Gange, No. LR-24688, District of Columbia (Dec. 11, 2019) — Press Release

raw: Nanotech Engineering, Inc., Michael James Sweaney (also known as Michael Hatton), David Sweaney, and Jeffery Gange

Nanotech Engineering, Inc., Michael James Sweaney (also known as Michael Hatton), David Sweaney, and Jeffery Gange, No. 1:19-cv-03633 (Dec. 11, 2019)

Caption
UNITED STATES SECURITIES AND EXCHANGE COMMISSION v. NANOTECH ENGINEERING, INC.
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summary

Nanotech Engineering, Inc. and its executives, Michael James Sweaney, David Sweaney, and Jeffery Gange, allegedly defrauded over 100 investors of $2.4 million, resulting in an asset freeze and temporary restraining order.

paragraph

Nanotech Engineering, Inc. and its executives allegedly defrauded over 100 investors of $2.4 million in a securities offering scheme. The defendants diverted investor funds for personal expenses, including luxury vehicles, a yacht, and cosmetic surgery, while concealing Michael Sweaney's prior felony securities fraud conviction. The SEC charges the defendants with violating antifraud provisions of the Securities Act and Exchange Act.

narrative

Nanotech Engineering, Inc. and its executives, Michael James Sweaney, David Sweaney, and Jeffery Gange, allegedly defrauded over 100 investors of $2.4 million in a securities offering scheme. The defendants reportedly diverted investor funds for personal luxuries, including a yacht named the Bella Vita, luxury vehicles, and cosmetic surgery. The SEC charges the defendants with violating antifraud provisions of the Securities Act and Exchange Act, and also named three shell entities—Nanotech Finance LLC, Omni Golf LLC, and 3 Dragons LLC—as relief defendants. The complaint seeks permanent injunctions, disgorgement of ill-gotten gains with interest, and civil penalties. The SEC obtained a temporary asset freeze and temporary restraining order against the defendants. The investigation, which is ongoing, is being conducted by Pei Chung with assistance from Jeffrey Anderson and Elizabeth Doisy.

Enriched metadata

Scheme
financial-fraud (95%)
Court
District of Columbia
Case No.
1:19-cv-03633
Victim loss
$2,400,000
Victims
100
Entity
Nanotech Engineering, Inc.
Classified financial-fraud(confidence 95%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 67% / precision 23%. detection rule →
Statutes
Section 17(a) of the Securities ActSection 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionNanotech Engineering, Inc.3 Dragons LLCJefferey GangeNanotech Finance LLCEagle Crest Development, Inc.David SweaneyMichael James SweaneyOmni Golf, LLCJeffery Gange
Keywords
michaelsweaneynanotech engineeringmichael jamesjames sweaneydavid sweaneynanotechsweaney knownknown michaelmichael hattonjeffery gangesecurities exchangesecuritieshatton davidsweaney jeffery

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 1
  • $2.40M $2.4 million $1M–$10M
Entities 7
  • person asset freeze
  • person david sweaney
  • person jeffery gange
  • person michael james sweaney
  • company nanotech engineering, inc.
  • agency Securities and Exchange Commission
  • organization Securities and Exchange Commission
Triples 21
  • Securities and Exchange Commission obtained asset freeze to halt alleged offering fraud by Nanotech Engineering, Inc., Michael James Sweaney (also known as Michael Hatton), David Sweaney, and Jeffery Gange
  • Securities and Exchange Commission announced obtained a temporary asset freeze
  • Securities and Exchange Commission obtained asset freeze
  • asset freeze halt alleged offering fraud
  • Securities and Exchange Commission filed Litigation Release No. 24688
  • Nanotech Engineering, Inc. is defendant
  • Michael James Sweaney is defendant
  • David Sweaney is defendant
  • Jeffery Gange is defendant
  • SEC obtained asset freeze
  • SEC announced asset freeze to halt alleged offering fraud
  • Securities and Exchange Commission filed No. 1:19-cv-03633
  • Nanotech Engineering, Inc. alleged offering fraud
  • Michael James Sweaney also known as Michael Hatton
  • SEC halt alleged offering fraud
  • Nanotech Engineering, Inc. obtained asset freeze
  • Michael James Sweaney charged offering fraud
  • David Sweaney charged offering fraud
  • Jeffery Gange charged offering fraud
  • SEC filed Litigation Release No. 24688
  • SEC unsealed December 9, 2019
PDF (from attached: complaint)
Securities and Exchange Commission v. Nanotech Engineering, Inc. · Source
Text layers
Extracted body text (2,418c) 
SEC Obtains Asset Freeze to Halt Alleged Offering Fraud Litigation Release No. 24688 / December 11, 2019 Securities and Exchange Commission v. Nanotech Engineering, Inc., Michael James Sweaney (also known as Michael Hatton), David Sweaney, and Jeffery Gange, No. 1:19-cv-03633 (D.C., filed December 5, 2019, unsealed December 9, 2019) The Securities and Exchange Commission announced that it has obtained a temporary restraining order and asset freeze against a California solar panel company and three executives who allegedly defrauded more than 100 investors. According to the SEC's complaint, Nanotech Engineering Inc., CFO Michael James Sweaney, also known as Michael Hatton, CEO David Sweaney, and COO Jeffery Gange have been engaged in an ongoing fraudulent offering of Nanotech's securities. While raising capital purportedly to fund Nanotech's development of solar panels using nanotechnology, the defendants allegedly diverted more than $2.4 million of investor funds for personal expenses, including luxury vehicles, a yacht named the Bella Vita, and cosmetic surgery. The complaint also alleges that the defendants are actively concealing from investors Michael Sweaney's prior felony securities fraud conviction. The SEC's complaint, filed in federal court in the District of Columbia on Dec. 5 and unsealed on Dec. 9, charges Nanotech Engineering and the three executives with violating the antifraud provisions of 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, and charges Michael James Sweaney, David Sweaney, and Gange with aiding and abetting Nanotech Engineering's violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The complaint seeks emergency relief as well as permanent injunctions, return of allegedly ill-gotten gains with prejudgment interest, and civil penalties. The complaint also names entities controlled by the defendants, Nanotech Finance LLC, Omni Golf LLC, and 3 Dragons LLC, as relief defendants. The SEC's investigation, which is ongoing, is being conducted by Pei Chung with assistance from Jeffrey Anderson and Elizabeth Doisy. The case has been supervised by Deborah A. Tarasevich and Antonia Chion. The litigation will be led by Gregory Bockin and Christopher Bruckmann, under the supervision of Stephan Schlegelmilch. SEC Complaint
OCR text (2,418c · html-text · 99% conf) 
SEC Obtains Asset Freeze to Halt Alleged Offering Fraud Litigation Release No. 24688 / December 11, 2019 Securities and Exchange Commission v. Nanotech Engineering, Inc., Michael James Sweaney (also known as Michael Hatton), David Sweaney, and Jeffery Gange, No. 1:19-cv-03633 (D.C., filed December 5, 2019, unsealed December 9, 2019) The Securities and Exchange Commission announced that it has obtained a temporary restraining order and asset freeze against a California solar panel company and three executives who allegedly defrauded more than 100 investors. According to the SEC's complaint, Nanotech Engineering Inc., CFO Michael James Sweaney, also known as Michael Hatton, CEO David Sweaney, and COO Jeffery Gange have been engaged in an ongoing fraudulent offering of Nanotech's securities. While raising capital purportedly to fund Nanotech's development of solar panels using nanotechnology, the defendants allegedly diverted more than $2.4 million of investor funds for personal expenses, including luxury vehicles, a yacht named the Bella Vita, and cosmetic surgery. The complaint also alleges that the defendants are actively concealing from investors Michael Sweaney's prior felony securities fraud conviction. The SEC's complaint, filed in federal court in the District of Columbia on Dec. 5 and unsealed on Dec. 9, charges Nanotech Engineering and the three executives with violating the antifraud provisions of 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, and charges Michael James Sweaney, David Sweaney, and Gange with aiding and abetting Nanotech Engineering's violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The complaint seeks emergency relief as well as permanent injunctions, return of allegedly ill-gotten gains with prejudgment interest, and civil penalties. The complaint also names entities controlled by the defendants, Nanotech Finance LLC, Omni Golf LLC, and 3 Dragons LLC, as relief defendants. The SEC's investigation, which is ongoing, is being conducted by Pei Chung with assistance from Jeffrey Anderson and Elizabeth Doisy. The case has been supervised by Deborah A. Tarasevich and Antonia Chion. The litigation will be led by Gregory Bockin and Christopher Bruckmann, under the supervision of Stephan Schlegelmilch. SEC Complaint

Related documents (1)