On September 5, 2019, the Securities and Exchange Commission filed an emergency action against Glenn C. Moller, his company Northridge Holdings, Ltd. and other affiliated entities that accused them of participating in a fraudulent $ unregistered securities offer 41 million Yesterday, 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 consent of the defendants in the action.
The SEC complaint alleges that since at least May 2014, the defendants have sold more than $ 41 million in promissory notes in unregistered transactions to more than 300 investors across the country, many of whom were not accredited and had the age of retirement. According to the complaint, Mueller and Northridge represented that the funds of the investors would be used to buy and renew real estate of several units, which would generate profits derived from higher occupations and rents, and / or the resale of the individual properties or units. They promoted their financial success and described investments in notes as “safe” and “low risk,” calling certain notes “CD.” According to the SEC’s complaint, Northridge’s business was not profitable and did not generate enough revenue to cover its expenses and pay the promised returns to investors, and investor funds were not used as represented. The defendants used a significant portion of the funds raised from new investors to pay the returns to previous investors and to pay the “search engines” that referred investors to Northridge, as well as for the stock trade and 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, and 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 future violations of the securities law, return of illicit profits from the defendants and civil penalties.
The SEC investigation, which continues, was conducted by Christine Jeon, Timothy Stockwell and Wilburn Saylor and was overseen by Amy Flaherty Hartman of the Chicago Regional Office. The SEC litigation will be directed by Michael Foster. The SEC appreciates the assistance of the Illinois Department of Securities, the Massachusetts Securities Division, the New Hampshire Securities Office and the New Jersey Securities Office in this matter.
from
https://alphabetastock.com/2019/10/05/sec-files-emergency-action-on-glenn-mueller-northridge-holdings/
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