U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22943 / March 14, 2014
Securities and Exchange Commission v. Charles Riel III a/k/a Chuck Riel et al., Civil Action No. 14-misc-0061-P1 (S.D.N.Y.)
SEC Files Subpoena Enforcement Action Against Charles Riel III for Failure to Produce Documents and Appear for Testimony in Investigation of Reinvest LLC Securities
The Securities and Exchange Commission announced today that it has filed a subpoena enforcement action in the U.S. District Court for the Southern District of New York against Charles Riel III a/k/a Chuck Riel and REinvest LLC, and that the Court entered an order directing Riel and REinvest to show cause why they should not be ordered to comply with the subpoenas they each received. According to the application and supporting papers, the SEC is investigating whether Riel, REinvest, and others have violated or are violating anti-fraud or other provisions of the federal securities laws in connection with an investment marketed by REinvest.
The SEC's application alleges that Riel and REinvest marketed a high-yield investment that promised fixed returns of 50% to 150% over a five-year period with "inherently low risk" but no explanation of its methodology. The SEC's staff is investigating the basis for the promised returns and the accuracy of other representations made to investors.
As part of its investigation, the staff in the SEC's New York Regional office served Riel and REinvest with document subpoenas in January 2014. The subpoena to Riel also required him to appear for sworn testimony in February 2014. The SEC's application alleges that Riel and REinvest failed to produce any documents in response to the subpoenas and that Riel failed to appear for sworn testimony. The SEC's application seeks an order from the federal district court compelling Riel and REinvest to comply fully with the subpoenas. The SEC is continuing its fact-finding investigation and, to date, has not concluded that anyone has violated the securities laws.