AP Summary

SEC Charges Municipal Advisor and Broker to Charter Schools With Failing to Register With The Commission

Sept. 9, 2022

File No. 3-21059

September 9, 2022 - The Securities and Exchange Commission today announced settled charges against Legacy Funding Services, LLC ("Legacy Funding"), and its sole owner, managing member and president, Raymond Howard Sowell, both of Raleigh, North Carolina, in connection with unregistered municipal advisory activity and unregistered broker services by Legacy Funding.

The SEC's order finds that from 2017 through 2019, Legacy Funding, through Sowell, provided municipal advisory and broker services in connection with four municipal bond issuances for the benefit of three public charter schools. These services included providing advice to the charter schools on the structure, timing and terms of the issuances and identifying, soliciting and negotiating with investors to purchase the bonds, and receiving transaction-based compensation. Neither Legacy Funding nor Sowell were registered with the Commission in any capacity when they provided these services.

The SEC's order finds that Legacy Funding willfully violated the registration provisions of Sections 15B(a)(1)(B) and 15(a)(1) of the Securities Exchange Act of 1934 and that Sowell caused Legacy Funding's violations. Without admitting or denying the findings in the order, Legacy Funding agreed to be censured and Legacy Funding and Sowell agreed to cease-and-desist orders and to pay, jointly and severally, a civil penalty of $60,000.

The SEC's investigation was conducted by Michael Adler and supervised by Peter Diskin of the Enforcement Division's Public Finance Abuse Unit and Atlanta Regional Office.

Last Reviewed or Updated: Sept. 9, 2022