SEC Obtains Final Judgment Against Suburban Chicago Tech Executive
Litigation Release No. 24372 / December 13, 2018
SEC v. Gregory E. Webb, et al., No. 11-CV-7152 (N.D. Ill. filed Oct. 11, 2011)
The Securities and Exchange Commission has obtained a final judgment against the former Chairman and CEO of a company purportedly in the homeland security business.
In October 2011, the SEC charged Gregory E. Webb, the Chairman and CEO of InfrAegis, Inc., and InfrAegis, with conducting a fraudulent, unregistered offering that raised over $20 million from at least 395 investors nationwide. According to the SEC's complaint, Webb and InfrAegis made false and misleading claims about the company's commercial success and the existence of contracts for the installation of InfrAegis' products.
On February 28, 2014, a federal grand jury in Chicago returned an 11-count indictment against Webb for substantially similar conduct as alleged in the SEC's complaint. On July 11, 2016, a jury found Webb guilty on nine of the eleven counts and, on March 1, 2017, the court sentenced Webb to nine years' imprisonment and ordered Webb to pay $9 million in restitution.
The final judgment in the SEC case, entered by consent on December 11, 2018 by the U.S. District Court for the Northern District of Illinois, enjoins Webb from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and orders Webb to pay disgorgement of $550,057 with prejudgment interest of $132,352, but deems payment of these amounts satisfied by a $9 million restitution order against Webb in the related criminal action.
The SEC's litigation against InfrAegis continues. The SEC is seeking injunctions and disgorgement plus interest against InfrAegis.
The SEC appreciates the assistance of the U.S. Attorney's Office for the Northern District of Illinois and the Federal Bureau of Investigation.