2017-09-28 sec-litreleases litigation_release 66 KB 2,714 chars

SEC v. David H. Welch; Marc J. Bryant; John C. Knight; Perry D. West; Bio-Global Resources, Inc.; Diversified Equities Inc., et al., No. LR-23947, Central District of California (Sept. 28, 2017) — Press Release

raw: David Howard Welch, et al

David Howard Welch, et al, No. LR-23947 (Sept. 28, 2017)

Caption
SEC v. David H. Welch, et al.
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David H

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David H. Welch, Marc J. Bryant, John C. Knight, and others are accused of operating as unregistered broker-dealers, selling securities in penny stock companies, including New Global Energy Inc., and raising over $10 million from investors. The alleged fraud involved selling securities in unregistered transactions using boiler rooms. The defendants are charged with violating Sections 15(a)(1) of the Securities Exchange Act of 1934 and Sections 5(a) and (c) of the Securities Act of 1933. Knight and Diversified Equities Inc. agreed to a judgment, including a penny stock bar, and Knight consented to an SEC Order barring him from the securities industry, with further proceedings to determine disgorgement, interest, and civil penalties.

narrative

David H. Welch, Marc J. Bryant, John C. Knight, and others are accused of operating as unregistered broker-dealers, selling securities in penny stock companies, including New Global Energy Inc., and raising over $10 million from investors. The alleged fraud involved selling securities in unregistered transactions using boiler rooms. The defendants are charged with violating Sections 15(a)(1) of the Securities Exchange Act of 1934 and Sections 5(a) and (c) of the Securities Act of 1933. Knight and Diversified Equities Inc. agreed to a judgment, including a penny stock bar, and Knight consented to an SEC Order barring him from the securities industry, with further proceedings to determine disgorgement, interest, and civil penalties. The U.S. Securities and Exchange Commission charged six unregistered entities and individuals—including brothers David H. Welch and Marc J. Bryant of California, and John C. Knight of Colorado—for illegally selling penny stocks in companies like New Global Energy Inc. and Global Energy Technology Group, raising over $10 million through unregistered boiler room operations. The defendants, including shell entities Bio-Global Resources, Diversified Equities Inc., and Diversified Equities Development Inc., violated Sections 5(a) and (c) of the Securities Act and Section 15(a)(1) of the Exchange Act by selling unregistered securities without proper registration. Knight and Diversified Equities Inc. agreed to a settlement enjoining them from future violations and imposing a penny stock bar, while Knight also consented to an industry bar; Welch, Bryant, and others face further proceedings for disgorgement, penalties, and interest. The SEC’s investigation, led by Jacqueline M. Moessner and litigation by Leslie J. Hughes, underscores the risks of unregistered broker-dealer activity and urges investors to verify credentials via investor.gov. The U.S. SEC charged six unregistered entities and individuals—including brothers David H. Welch and Marc J. Bryant, and John C. Knight—along with penny stock companies New Global Energy Inc. and its predecessor—for illegally selling over $10 million in unregistered securities through boiler-room operations between 2013 and 2017. The defendants, including entities Bio-Global Resources, Diversified Equities Inc., and Diversified Equities Development Inc., violated Sections 5(a) and (c) of the Securities Act and Section 15(a)(1) of the Exchange Act by selling securities without registration or broker-dealer status. All defendants, including New Global’s CEO Perry D. West, were accused of failing to file registration statements. Knight and DEI settled without admitting or denying guilt, agreeing to injunctions, a penny stock bar, and an industry bar, while disgorgement, interest, and penalties against others remain pending court determination. The SEC’s investigation was led by Jacqueline M. Moessner and litigation by Leslie J. Hughes.

Enriched metadata

Scheme
boiler-room (100%)
Court
Central District of California
Outcome
settled
Entity
David Howard Welch
Classified boiler-room(confidence 100%). EDGAR detection: forms Form D· recall 50% / precision 4%. detection rule →
Statutes
Section 15(a)(1) of the Securities Exchange ActSection 15(a)(1) of the Securities Exchange ActSections 5(a) and (c) of the Securities Act
Parties
Securities and Exchange CommissionDavid H. WelchMarc J. BryantJohn C. KnightPerry D. WestBio-Global Resources, Inc.Diversified Equities Inc.Diversified Equities Development Inc.New Global Energy Inc.Global Energy Technology Group, Inc.
Keywords
securitieswelchsecurities exchangepenny stocksecknightdavid howardhoward welchexchange commissionwelch bryantbryant knightstocksec'sincdavid

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 1
  • $10.00M $10 million $10M–$100M
Entities 8
  • location California
  • person david howard welch
  • person david h. welch
  • person illegal stock sales
  • person marc j. bryant
  • company penny stock company
  • agency Securities and Exchange Commission
  • organization Securities and Exchange Commission
Triples 15
  • Securities and Exchange Commission charged six unregistered broker-dealers
  • Securities and Exchange Commission charged Penny Stock Company
  • Securities and Exchange Commission alleges illegal stock sales
  • David H. Welch located in California
  • Marc J. Bryant located in California
  • David Howard Welch is defendant in Securities and Exchange Commission v. David Howard Welch, et al
  • Securities and Exchange Commission filed Litigation Release No. 23947
  • Securities and Exchange Commission charged six unregistered broker-dealers located in California and Colorado
  • David H. Welch and Marc J. Bryant were involved in illegal sales of securities in penny stock companies
  • David Howard Welch charged unregistered broker-dealers
  • SEC charged unregistered broker-dealers
  • David H. Welch sold securities in penny stock companies
  • Marc J. Bryant sold securities in penny stock companies
  • SEC filed complaint
  • U.S. SECURITIES AND EXCHANGE COMMISSION charged David Howard Welch, et al
PDF (from attached: complaint)
Securities and Exchange Commission v. David Howard Welch et al. · Source
Text layers
Extracted body text (2,714c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23947 / September 28, 2017 Securities and Exchange Commission v. David Howard Welch, et al, No. 17-cv-01968 (C.D. Cal. filed Sept. 27, 2017) SEC Charges Unregistered Broker-Dealers and Penny Stock Company With Registration Violations For Illegal Stock Sales The Securities and Exchange Commission has charged six unregistered broker-dealers located in California and Colorado with illegally selling securities in penny stock companies. The SEC's complaint alleges that brothers David H. Welch and Marc J. Bryant, both located in southern California, and John C. Knight, located in Colorado, sold securities in New Global Energy Inc., its predecessor company, Global Energy Technology Group, Inc., and other companies in unregistered transactions using sales agents located in boiler rooms, both nationally and internationally, raising over $10 million from investors over four years. Welch, Bryant and Knight used various entities, including Defendants Bio-Global Resources, Inc., Diversified Equities Inc. (DEI), and Diversified Equities Development Inc. (DED), to make these illegal sales. In addition, according to the complaint, all of the defendants, including New Global and its CEO, Florida attorney Perry D. West, sold securities without filing a registration statement with the SEC. The SEC alleges that Welch, Bryant, Knight, Bio-Global, DEI and DED weren't registered with the SEC to sell investments. The SEC encourages investors to check the backgrounds of people selling investments by using the SEC's investor.gov website to quickly identify whether they are registered professionals and confirm their identity. The complaint alleges that Welch, Bryant, Knight, Bio-Global, DEI and DED violated Section 15(a)(1) of the Securities Exchange Act of 1934, and all the defendants violated Sections 5(a) and (c) of the Securities Act of 1933. The complaint seeks injunctions, disgorgement of the defendants' ill-gotten gains, prejudgment interest, penalties, and penny stock bars. Knight and DEI, without admitting or denying the allegations in the SEC's complaint, agreed to entry of a judgment that enjoins them from violating the charged provisions of the federal securities laws and imposes a penny stock bar against Knight. There will be further proceedings before the court to determine the amounts of disgorgement, interest, and civil penalties. Knight also consented, without admitting or denying the findings, to an SEC Order barring him from the securities industry. The SEC's investigation was conducted by Jacqueline M. Moessner and supervised by Mary S. Brady. The SEC's litigation is being led by Leslie J. Hughes. SEC Complaint
OCR text (2,714c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23947 / September 28, 2017 Securities and Exchange Commission v. David Howard Welch, et al, No. 17-cv-01968 (C.D. Cal. filed Sept. 27, 2017) SEC Charges Unregistered Broker-Dealers and Penny Stock Company With Registration Violations For Illegal Stock Sales The Securities and Exchange Commission has charged six unregistered broker-dealers located in California and Colorado with illegally selling securities in penny stock companies. The SEC's complaint alleges that brothers David H. Welch and Marc J. Bryant, both located in southern California, and John C. Knight, located in Colorado, sold securities in New Global Energy Inc., its predecessor company, Global Energy Technology Group, Inc., and other companies in unregistered transactions using sales agents located in boiler rooms, both nationally and internationally, raising over $10 million from investors over four years. Welch, Bryant and Knight used various entities, including Defendants Bio-Global Resources, Inc., Diversified Equities Inc. (DEI), and Diversified Equities Development Inc. (DED), to make these illegal sales. In addition, according to the complaint, all of the defendants, including New Global and its CEO, Florida attorney Perry D. West, sold securities without filing a registration statement with the SEC. The SEC alleges that Welch, Bryant, Knight, Bio-Global, DEI and DED weren't registered with the SEC to sell investments. The SEC encourages investors to check the backgrounds of people selling investments by using the SEC's investor.gov website to quickly identify whether they are registered professionals and confirm their identity. The complaint alleges that Welch, Bryant, Knight, Bio-Global, DEI and DED violated Section 15(a)(1) of the Securities Exchange Act of 1934, and all the defendants violated Sections 5(a) and (c) of the Securities Act of 1933. The complaint seeks injunctions, disgorgement of the defendants' ill-gotten gains, prejudgment interest, penalties, and penny stock bars. Knight and DEI, without admitting or denying the allegations in the SEC's complaint, agreed to entry of a judgment that enjoins them from violating the charged provisions of the federal securities laws and imposes a penny stock bar against Knight. There will be further proceedings before the court to determine the amounts of disgorgement, interest, and civil penalties. Knight also consented, without admitting or denying the findings, to an SEC Order barring him from the securities industry. The SEC's investigation was conducted by Jacqueline M. Moessner and supervised by Mary S. Brady. The SEC's litigation is being led by Leslie J. Hughes. SEC Complaint

Related documents (1)