U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23006 / May 28, 2014
Securities and Exchange Commission v. Inofin, Inc., Michael J. Cuomo, Kevin J. Mann, et al., Civil Action No. 1:11-CV-10633 (D. Mass., Complaint Filed April 14, 2011)
Judgement Entered Against Former Inofin Chief Operating Officer
The Securities and Exchange Commission announced today that on May 28, 2014, the U.S. District Court for the District of Massachusetts entered final judgment by consent against Melissa George, a former chief operating officer of Massachusetts-based Inofin, Inc., in a civil injunctive action filed by the Commission on April 14, 2011. Among other things, the judgment orders George to pay a total of $177,431.69 in disgorgement of ill-gotten gains plus pre-judgment interest and a civil penalty.
The Commission’s complaint, which it filed on April 14, 2011, alleged that Inofin and its executives, Melissa George of Duxbury, Massachusetts, Michael Cuomo, of Plymouth, Massachusetts and Kevin Mann, Sr. of Marshfield, 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.
The final judgment as to George imposed 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 also orders George to pay disgorgement of $25,157.36, representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $2,274.33 for a total of $27,431.69 plus a civil penalty in the amount of $150,000.
The Commission previously obtained final judgments by consent as to Cuomo and Mann which included permanent injunctions prohibiting Cuomo and Mann from violating Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and Sections 5 and 17(a) of the Securities Act. The Commission also previously obtained a final judgment by consent as to Affeldt, which included a permanent injunction prohibiting him from violating Sections 15(a) of the Exchange Act and Sections 5(a) and 5(c) of the Securities Act. The SEC’s action remains pending against Inofin, and the Keoughs.For further information, see Litigation Release No. 21929 (April 14, 2011), Litigation Release No. 22435 (August 6, 2012), and Litigation Release No. 22667 (April 5, 2013).