U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23981 / November 9, 2017
Securities and Exchange Commission v. Hadsell Chemical Processing, LLC and Robert Walton, Jr., No. 2:17-cv-432 (S.D. Ohio filed May 17, 2017)
Ohio Chemical Company Permanently Enjoined for Fraud Violations
The SEC announced that on November 8, 2017 former Waverly, Ohio-based chemical company, Hadsell Chemical Processing, LLC, consented to the entry of a final judgment permanently enjoining it from violating the registration and antifraud provisions of the federal securities laws.
The SEC's complaint, filed on May 17, 2017 in the U.S. District Court for the Southern District of Ohio, alleged that Hadsell Chemical made material misrepresentations to 65 investors in connection with the offer and sale of approximately $12 million in promissory notes between April 2012 and October 2015 and failed to register the offering with the SEC. Among other things, the complaint alleged that Hadsell Chemical and its former president misrepresented that the investments were guaranteed, that the company had received multi-million dollar contracts from customers and that that the company was profitable, when none of these statements were true.
The final judgment, entered pursuant to Hadsell Chemical's consent without admitting or denying the allegations in the SEC's complaint, imposes a permanent injunction and dismisses the SEC's claims for disgorgement and prejudgment interest due to Hadsell Chemical's Chapter 7 bankruptcy proceeding.
The litigation against Defendant Robert Walton, Jr. continues.
For further information, see Litigation Release No. 23835 (May 18, 2017)