SEC v. Veros Partners, Inc., et al.
Case No. 15-cv-00659-JMS-MJD (S.D. Ind.)
On April 22, 2015, the Commission filed a complaint, which was amended on June 11, 2015, against Veros Partners, Inc. (“Veros”), Matthew D. Haab (“Haab”), Jeffrey B. Risinger (“Risinger”), Veros Farm Loan Holding LLC (“Veros Farm”), Tobin J. Senefeld (‘Senefeld”), Farm Growcap LLC (“Farm”), and Pincap LLC (“Pincap”) (collectively, “Defendants”), and Pin Financial LLC (“Relief Defendant”). The complaint alleged that, from 2013 to 2014, the Defendants violated federal securities laws by fraudulently raising at least $15 million from at least 80 investors in two separate farm loan offerings. See Amended Complaint.
As of July 3, 2017, Haab, Risinger, and Veros have settled. No payments have been received from Veros towards the $1,083,283.19 in disgorgement, prejudgment interest, and civil penalties. See Veros’ Final Judgment. Haab and Risinger have paid as ordered, a total of $283,640.00 in disgorgement. See Haab’s Final Judgment and Risinger’s Final Judgment.
On June 30, 2017, the Commission filed a motion to transfer the funds received from Haab and Risinger (“Settlement Funds”) to the court-appointed Receiver in this matter for distribution to harmed investors. See the Commission’s Motion.
On July 3, 2017, the Court entered an order approving the Commission’s motion to transfer the Settlement Funds to the Receiver for distribution to investors. See the Court’s Order.
On October 11, 2017, the Court entered a judgment as to Senefeld, which ordered disgorgement, prejudgment interest, and civil penalties to be paid, in amounts to be determined by the Court upon motion of the Commission. See Senefeld’s Judgment. On November 6, 2017, the Commission filed a motion seeking the Court to enter a final judgment against Senefeld ordering him to pay $698,818.29 in disgorgement, $94,538.36, and civil penalties as appropriate. See the Commission’s Motion. On November 29, 2017, Senefeld filed a response in opposition to the Commission’s motion. See Senefeld’s Opposition. On December 12, 2017, the Commission filed a reply to Senefeld’s opposition in support of its motion for disgorgement, prejudgment interest, and civil penalties. See the Commission’s Reply.
On February 6, 2018, pursuant to his consent and without admitting or denying the allegations against him, the Court entered a Final Judgment as to Senefeld. Senefeld was ordered to pay a total of $843,356.65 in disgorgement, prejudgment interest, and penalties. See Senefeld’s Final Judgment.
On March 26, 2018, the Court entered an order that (i) approved the Receiver’s Final Report and Final Accounting; (ii) authorized the Receiver to prepare and file federal and state 2017 tax returns for FarmGrowCap, LLC and PinCap, LLC and file final returns for the period of time they were operational in 2018 and, thereafter, administratively dissolve the business entities; (iii) approved the Receiver’s and its attorney’s fees expenses for the period of October 1, 2017 through January 31, 2018, and authorized payment thereof; (iv) approved the final distribution of Receivership assets; (v) approved the Receiver’s projected fees & expenses for termination of the Receivership; and (vi) ordered the Receiver to file a Supplemental Final Report and a Supplemental Final Accounting. See the Court’s Order.
On April 16, 2018, the Court entered a Final Judgment against PinCap. Pincap was ordered to pay a total of $440,511.37 in disgorgement and prejudgment interest within 14 days after entry of the Final Judgment. The Commission was ordered to hold all funds (the “Fund”), pending further order of the Court. See PinCap’s Final Judgment.
Also on April 16, 2018, Court entered Final Judgments against Farm and Veros Farm, without ordering them to pay any disgorgement, prejudgment interest, and penalties. See Farm’s Final Judgment and Veros Farm’s Final Judgment.
On May 21, 2018, the Court entered a Final Judgment pursuant to Federal Rule of Civil Procedure 58 as to Relief Defendant. Relief Defendant was ordered to pay a total of $9,273.05 in disgorgement and prejudgment interest. See Federal Rule of Civil Procedure 58 as to Relief Defendant.
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William E. Wendling, Jr.
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