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SEC v. EnviraTrends, Inc., et al. Case No. 15-cv-01903-JDW-TGW (M.D. Fla.)

Sept. 21, 2022

On August 17, 2015, the SEC filed a complaint against EnviraTrends, Inc. (“EnviraTrends”) and its founder and Chief Executive Officer, Russell F. Haraburda (“Haraburda”) (collectively, the “Defendants”). The complaint alleged that, from mid-2009 until at least February 2014, the Defendants raised over $2.3 million through the sale of EnviraTrends unregistered offerings to over 100 investors in thirteen states based on false and misleading statements regarding the company’s activities and financial condition, and the purposes for which investors’ funds would be used. The complaint further alleged that Haraburda misappropriated most of the money raised from investors for his own personal use. See Complaint.

The Defendants were ordered to pay a total of $150,000.00 in disgorgement and prejudgment interest. The SEC was ordered to hold all funds (collectively, the “Fund”), pending further order of the Court. See Defendant’s Final Judgment.

The Defendants have paid a total of $150,000.00 into the Fund for the distribution to harmed investors (“Distribution Fund”).

On March 4, 2016, the Court appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Distribution Fund.

On September 16, 2016, the SEC filed a motion to appoint a distribution agent and to approve a proposed distribution plan, with the proposed distribution plan (“Distribution Plan”) attached as Exhibit A. See Motion with Distribution Plan.

On September 26, 2016, the Court granted the SEC’s motion and entered an order to appoint Nancy Chase Burton as the Distribution Agent to oversee the administration and distribution of the Distribution Fund to harmed investors and approved the Distribution Plan. See Order Appointing Distribution Agent and Approving Proposed Distribution Plan.

The Distribution Plan provides that the distribution of the Distribution Fund shall be made on a pro rata basis to the 42 Eligible Recipients, who were harmed by the Defendants’ misconduct and suffered a net loss. The Eligible Recipients Pro Rata Shares are shown on the Pro Rata Share Calculation Chart, attached as Exhibit B.

For more information, please contact the Distribution Agent:

Nancy Chase Burton, SEC, Office of Distributions
Telephone Number: 202-551-4425

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