On Friday, the SEC (Securities and Exchange Commission) filed an emergency action against Glenn Moller, his company Northridge Holdings, along with other companies/persons which accused them of participating in a fraudulent and unregistered securities offer 41 million , the United States District Court for the Northern District of Illinois issued orders imposing a preliminary injunction, freezing Mueller’s assets and appointing a receiver over the assets of the other defendants. Orders were entered with the permission of the defendants in the action.

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The SEC complaint states that since at least May 2014, the defendants have sold over $41 million in promissory notes in unregistered transactions to more than 300 investors across the country, many of whom weren’t licensed and had the era of retirement. According to the complaint, Mueller and Northridge represented that the capital of these investors could be used to purchase and renew property of many units, which could generate profits derived from higher occupations and rents, and / or the resale of the individual properties or components. They encouraged their financial success and explained investments in notes as”safe” and”low risk,” calling certain notes”CD.” According to the SEC’s complaint, Northridge’s business wasn’t profitable and did not generate enough revenue to pay its expenditures and pay the promised returns to investors, and investor funds weren’t used as represented. The defendants employed a substantial part of the funds raised from new investors to pay the returns to past investors and also to pay the”search engines” that referred investors to Northridge, as well as for the stock trade along with the alleged loans to members from Mueller’s family.

The SEC complaint accuses Glenn C. Mueller, Northridge Holdings, Ltd., Southridge Holdings, Ltd., Eastridge Holdings, Ltd., Brookstone Investment Group, Ltd., Guardian Investment Group, Ltd., Unity Investment Group Ltd. and Amberwood Holdings LP for violating the registration provisions of Sections 5 (a) and 5 (c) of the Securities Act of 1933, along with also the anti-fraud provisions of Section 17 (a) of the Securities Act, and Section 10 (b) of the Stock Exchange Act of 1934 and Rule 10b-5 (a) and (c) below, and Mueller and Northridge in violation of Rule 10b-5 (b). The SEC’s lawsuit seeks precautionary measures against potential violations of the securities law, return of illicit profits from the defendants and civil penalties.

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The SEC investigation, that continues, was conducted by Christine Jeon, Timothy Stockwell and Wilburn Saylor and has been governed by Amy Flaherty Hartman of the Chicago Regional Office. The SEC lawsuit is going to be led at Michael Foster. The SEC appreciates the assistance of the Illinois Department of Securities, the Massachusetts Securities Division, the New Hampshire Securities Office along with the New Jersey Securities Office in this matter.