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Houston Man Charged with Conducting Multiyear Offering Fraud Targeting Fellow Members of his 'Success Club'

Feb. 17, 2017

The SEC charged Darrell Glenn Hardaway and his company Hardaway Net-Works, Inc. (HNW) in connection with their role in a multiyear offering fraud targeting members of a nationwide self-described “success club” known as the Global Information Network (GIN). 

The SEC’s complaint, filed in federal court in Houston, Texas, alleges that since November 2010, Hardaway raised at least $4.7 million from over one hundred investors residing throughout the United States. Hardaway, who was a high-ranking member in GIN, marketed securities in his company, HNW, to his fellow members. Hardaway focused on GIN members both because they had great trust in him and because they had taken an oath not to criticize him. Hardaway persuaded GIN members to invest in HNW through promises of securing a national roster of customers and ultimately taking the company public. The SEC’s complaint alleges that Hardaway's representations were false, and that Hardaway instead used most investor funds to pay himself a salary and on various personal expenses.

The SEC’s investigation was conducted by Jeffrey Cohen and Jody Moore of the Fort Worth Regional Office. The case was supervised by David L. Peavler and David Reece. Christopher Davis will lead the litigation. More information is available here.

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