U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22793 / September 9, 2013
Securities and Exchange Commission v. Projaris Management, LLC et al, Civil Action No. 1:13-cv-00849 (D.N.M.)
SEC Charges Projaris Management LLC and Victory Partners Financial with Fraud
On September 9, 2013, the Securities and Exchange Commission brought securities fraud charges against Projaris Management, LLC (Projaris), Victory Partners Financial (Victory), Joe G. Lawler, Brandt A. Lawler, Michael S. Lawler, Ryan G. Lawler, Timothy J. Lawler, and Pamela Hass in a connection with an offering fraud that raised approximately $1.4 million from over 23 investors in multiple states from May 2008 through August 2012.
The complaint, filed in the United States District Court for the District of New Mexico, alleges that Projaris and Victory, which operated in Farmington, New Mexico and Phoenix, Arizona, along with the Lawlers of Farmington, New Mexico participated in a scheme that defrauded investors out of more than $835,000. Additionally, the complaint alleges that the primary function of the defendants’ scheme was to convince investors to invest in a fraudulent pooled investment that purportedly invested in metals, commodities, real estate, and a fund that, among other things, invested overseas. The defendants then siphoned off the invested funds for their own purposes and to continue to perpetuate the fraud. According to the complaint, none of the securities offered was covered by a registration statement filed with the Commission, and Hass, Projaris’ National Sales Director of Tomahawk, Wisconsin, solicited investors to invest in Projaris, but was not a registered broker-dealer.
The complaint alleges that Projaris, Victory, and the Lawlers violated Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933 (Securities Act). The complaint also alleges that Projaris, Victory, Joe Lawler, and Hass violated Section 5 of the Securities Act for the offer and sale of securities in unregistered transactions. Finally, the complaint alleges that Joe Lawler and Hass violated Section 15(a) of the Exchange Act by acting as unregistered broker-dealers. The Commission seeks permanent injunctive relief, disgorgement plus prejudgment interest, and civil monetary penalties.