Litigation Release No. 22435 / August 6, 2012
Securities and Exchange Commission v. Inofin, Inc., Michael J. Cuomo, Kevin J. Mann, Sr., Melissa George, Thomas Kevin Keough, David Affeldt, and Nancy Keough, 1:11-CV-10633 (D. Mass., Complaint Filed April 14, 2011)
FINAL JUDGEMENTS ENTERED AGAINST FORMER EXECUTIVES OF MASSACHUSETTS COMPANY
The Securities and Exchange Commission announced today that final judgments were entered on July 23 and 24, 2012, respectively in its civil injunctive action against Kevin Mann, Sr., and Michael J. Cuomo, filed in the United States District Court of Massachusetts.
The Commission’s complaint alleged that Inofin and its executives, Cuomo, of Plymouth, Massachusetts, Mann of Marshfield, Massachusetts, and Melissa George of Duxbury, Massachusetts, illegally raised at least $110 million from hundreds of investors in 25 states and the District of Columbia through the sale of unregistered notes. According to the SEC’s complaint, Inofin, along with Cuomo, Mann and George, materially misrepresented how the Company was using investor money and the Company’s financial performance. The SEC also charged two sales agents – David Affeldt and Thomas K. (Kevin) Keough – alleging that they promoted the offering and sale of Inofin’s unregistered securities. Keough’s wife Nancy Keough is named in the complaint as a relief defendant for the purposes of recovering proceeds she received as a result of the violations.
Without admitting or denying the allegations in the complaint, Cuomo and Mann consented to entry of a permanent injunction against violations of Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”), and Rule 10b-5 promulgated thereunder, and Sections 5 and 17(a) of the Securities Act of 1933 (the “Securities Act”).
The final judgment as to Cuomo orders him pay disgorgement of $1,272, 914.57, representing profits he gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $440,181.42 for a total of $1,713,095.90, plus a civil penalty in the amount of $150,000.
The final judgment as to Mann orders him to pay disgorgement of $733,944, representing profits he gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $170,762 for a total of $904,706, plus a civil penalty in the amount of $150,000.
The SEC’s action remains pending against Inofin, George, Affeldt and the Keoughs.