LITIGATION RELEASE NO. 22239 / January 26, 2012
United States Securities and Exchange Commission v. Integrity Financial AZ, LLC, Steven R. Long, Stanley M. Paulic, Walter W. Knitter, and Robert C. Koeller, Civil Action No. 10-CV-782 (SO) (N.D. Ohio filed Apr. 15, 2010)
COURT ORDERS INTEGRITY FINANCIAL PROMOTER TO PAY $179,000
The U.S. Securities and Exchange Commission (Commission) today announced that, on January 20, 2012, the U.S. District Court for the Northern District of Ohio entered a final judgment against Robert C. Koeller in a Commission injunctive action, United States Securities and Exchange Commission v. Integrity Financial AZ, LLC, Steven R. Long, Stanley M. Paulic, Walter W. Knitter, and Robert C. Koeller, Civil Action No. 10-CV-782 (SO) (N.D. Ohio filed Apr. 15, 2010). The Commission’s complaint alleged that Koeller promoted an unregistered offering of securities by Integrity Financial AZ, LLC in the form of promissory notes purportedly secured by real estate in Arizona. The complaint further alleged that Koeller made material verbal and written misrepresentations to investors and prospective investors such as claims that IFAZ is a “private non registered REIT,” that investors’ “Interest is FDIC insured,” and that “You earn 10% guaranteed without any risk to your principal.”
Koeller previously consented to full injunctive relief and deferred to the court, upon motion of the Commission, the determination of disgorgement, prejudgment interest, and civil penalties. The final judgment was entered after the district court granted the Commission’s motion for an order granting financial remedies. The final judgment permanently enjoins Koeller from further violations of Sections 5 and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 (Exchange Act), and Exchange Act Rule 10b-5 and finds him liable for disgorgement in the amount of $87,379, prejudgment interest thereon in the amount of $4,454.72, and a civil penalty in the amount of $87,379.
The final judgment against Koeller concludes the Commission’s litigation.