U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23466 / February 12, 2016
Securities and Exchange Commission v. Gregory Ruehle, Civil Action No. 3:16-cv-00366-AJB-MDD (S.D. Cal., filed February 11, 2016)
SEC Charges Oceanside Man with Defrauding Investors and Acting as an Unregistered Broker-Dealer
The Securities and Exchange Commission yesterday charged an unregistered broker in Oceanside, Calif., with fraudulently selling purported stock in a medical device company and pocketing investors' money.
The SEC alleges that Gregory Ruehle raised approximately $1.9 million from more than 100 investors but never delivered or transferred the securities as promised while using the money to pay gambling debts among other personal expenditures.
In a parallel action, the U.S. Attorney's Office for the Southern District of California yesterday announced criminal charges against Ruehle.
According to the SEC's complaint filed in U.S. District Court for the Southern District of California:
The SEC alleges that Ruehle violated the antifraud provisions of the securities laws in Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933. Finally, the SEC alleges that Ruehle also violated Section 15(a) of the Exchange Act by acting as an unregistered broker-dealer. The SEC's complaint seeks a permanent injunction, civil penalties, disgorgement plus prejudgment interest, and other relief against Ruehle.
The SEC's continuing investigation is being conducted by Matthew Montgomery and Robert Conrrad, and the litigation will be led by Gary Leung. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of California and the Federal Bureau of Investigation.