U.S. Securities & Exchange Commission
SEC Seal
Home | Previous Page
U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23990 / November 17, 2017

Securities and Exchange Commission v. Green Tree Investment Group, Inc. and Jeffrey B. Mallett, Civil Action No. 1:17-cv-1091 (W.D.Tex., filed November 17, 2017)

SEC Charges Broker and His Company for Failure to Register

On November 17, 2017, the Securities and Exchange Commission charged Jeffrey B. Mallett of Mason, Texas and his company, Green Tree Investment Group, Inc., for acting as unregistered brokers. Mallett and Green Tree have agreed to settle the SEC's charges and will pay combined disgorgement, interest, and penalties of over $777,000.

According to the SEC's complaint, filed in the U.S. District Court for the Western District of Texas, Mallett and Green Tree purchased ownership interests in 16 different wells and oilfield facilities in Texas for the benefit of other investors. From April 2010 through October 2014, Mallett and Green Tree allegedly solicited and received approximately $3.7 million from investors and paid approximately $2.7 million to purchase ownership interests in the wells for the investors' respective accounts. The complaint alleges that Mallett and Green Tree received compensation by marking up the investors' purchase prices and charging commissions by retaining 10% of the interests purchased by the investors. The complaint further alleges that, despite acting as brokers, Mallett and Green Tree failed to register as required under Section 15(b) of the Securities Exchange Act of 1934.

Mallett and Green Tree agreed to settle the case without admitting or denying the SEC's allegations. The settlement is pending final approval by the court. Specifically, Mallett and Green Tree consented to a final judgment that permanently enjoins them from violating Section 15(a) of the Exchange Act; requires them to disgorge their ill-gotten gains of $651,597, and pay prejudgment interest of $111,259, within one year of the judgment; requires Mallett to pay a civil penalty of $7,500; and requires Green Tree to pay a civil penalty of $7,500.

The SEC's investigation was conducted by Christopher Ahart and Melvin Warren, and supervised by Jessica B. Magee and Jim Etri of the Fort Worth Regional Office. The litigation is led by Keefe Bernstein. The Commission appreciates the assistance of the Texas State Securities Board in this matter.

SEC Complaint

 

https://www.sec.gov/litigation/litreleases/2017/lr23990.htm


Modified: 11/17/2017