Jonathan W. Mikula, John B. Craddock, JW&P Consulting, LLC, and Nations Warranty Group, Inc.
On October 2, 2008, the SEC obtained a temporary restraining order and asset freeze against Jonathan W. Mikula, John B. Craddock, JW&P Consulting, LLC and Nations Warranty Group, Inc. The SEC alleged the defendants raised approximately $2.8 million through the fraudulent offer and sale of unregistered securities in short-term promissory notes to approximately 120 investors.
According to the complaint, the notes were sold with terms of either 100 or 220 days, and promised rates of return of 4% or 5% per month. Among the misrepresentations and omissions, the SEC alleged that the defendants described Nations Warranty to investors as a profitable company when, in fact, it had incurred a net loss of at least $1.2 million during 2008, falsely claimed the notes were “guaranteed” and failed to disclose that Mikula had previously been enjoined by the SEC for operating a Ponzi scheme.
The Court also appointed Mr. Pat Huddleston as Receiver for the estates of Nations Warranty and JW&P Consulting. On October 9, 2008, the SEC obtained a preliminary injunction against the defendants and a continuation of the asset freeze and the Receivership. For more information about the SEC’s action, you can read Litigation Release No. 20773 (Oct. 6, 2008).
For the latest information, you can visit the Receiver's website. After you click on the heading for Nations Warranty, you will find topics to the right of the web page. You should then click on the specific topic and scroll down to see the text.