The Securities and Exchange Commission, or SEC, has filed legal action against Roy W. Hill and Eric N. Shelly. It alleges their involvement in a fraud offering that raised more than $155 million by over 500 investors. The SEC has filed an emergency action at the U.S. District Court of Western District of Texas. It seeks to restrain defendants’ ongoing offering, freeze assets, appoint an receiver and provide other urgent relief.
Hill and Shelly, it appears from the sealed complaint, were offering investments in funds sponsored jointly by their companies, Clean Energy Technology Association, Inc. and Freedom Impact Consulting, LLC. The defendants stated that the funds would be used to purchase carbon-capture units (CCUs), developed by CETA. Further, they claimed that the CCUs would be leased to oil producers and enhance recovery and marketability. Hill and Shelly are accused of misleading investors by making false claims regarding the CCUs patents, major oil and gas companies being customers, and quarterly returns that were consistently ten percent.
But the SEC’s probe revealed that it was a fraud. CETA did not generate significant revenues through CCU operations and the quarterly distributions to investors came from capital from other investors. Shelly, FIC and others allegedly fabricated false financial reports to investors in order to hide and perpetuate the scam. These statements supposedly reflected nonexistent investment returns and economic activity.
The SEC charges Hill, Shelly and FIC in its complaint with violating antifraud laws of the Securities Act of 1933, as well the Securities Exchange Act of 1933. The SEC is seeking permanent injunctions and disgorgement of gains ill-gotten with prejudgment interests, as well as civil penalties, against all defendants.
The SEC has requested a preliminary injunction hearing for May 16, 2023. Jeffrey Cohen and Melvin Warren, from the Fort Worth Regional Office of the SEC, conducted the ongoing investigation under the supervision Nikolay V.Vydashenko & Eric R. Werner. Jennifer Reece, Jason Rose and B. David Fraser supervise the litigation.
Recover Investment Losses
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Securities and Exchange Commission is the regulatory agency of the United States. Its primary responsibility is to protect investors and maintain fair and efficient markets. The SEC accomplishes this by various measures and action.
First, the SEC mandates that companies provide important financial information for the public. This promotes transparency, and helps investors make informed decisions. The SEC requires companies to disclose important financial information, including regular financial reports, prospectuses and announcements about new securities offerings.
The SEC also enforces rules and regulations that regulate the securities industry. It enforces antifraud provisions such as prohibiting the insider trading of securities and ensuring fairness in the market. The SEC regulates brokers, investment advisors and other market participants in order to protect investors against fraudulent activities and ensure compliance with industry standards.
The SEC also supervises stock exchanges, self regulation organizations and other entities that are involved in the Securities Market. The SEC reviews and approves the rules and regulations proposed to protect investors and ensure that they are fair.
In addition, the SEC is a key player in the enforcement of securities laws. It also takes legal action against those who violate these laws. They investigate possible violations, take enforcement actions and impose sanctions or penalties to deter fraud and protect investors.
Overall, the SEC mission is to facilitate fair and efficient market, protect investors, and facilitate capital creation. The SEC’s regulatory oversight, enforcement action, and promotion transparency are all part of its efforts to create a market where investors feel confident in the integrity and quality of the securities markets and can make informed decisions.
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