SEC Charges Texas Attorney General With Fraud

The Securities and Exchange Commission alleges that the Texas Attorney General  “… raised $840,000 in investor funds for Servergy and received 100,000 shares of stock in return, but never disclosed his commissions to prospective investors while recruiting them.”

Further, the Commission’s complaint states that the company and its CEO sold $26 million worth of company stock in private offerings while misleading investors to believe that the company’s Cleantech CTS-1000 server (the company’s sole product) was especially energy-efficient when compared to other company’s servers, but failed to disclose it was using older non-standard technology.
https://www.sec.gov/news/pressrelease/2016-65.html

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in accredited investor, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, fraud, Funding Portals, Investments, Jobs, review, SEC, Small Business, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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