SEC Charges Individual with Acting as an Unregistered Broker

Litigation Release No. 24719 / January 16, 2020

Securities and Exchange Commission v. Allan L. Lundervold, No. 02-cv-263 (D. Minn., January 16, 2020)

On January 16, the Securities and Exchange Commission charged Allan L. Lundervold with selling nearly $9 million in unregistered securities without being registered as or associated with a registered broker-dealer.

According to the SEC's complaint, from 2012 through 2015, Lundervold, who currently resides in Arizona, raised nearly $9 million for ARP Wave, LLC, through selling unregistered ARP Wave securities to more than 100 investors in Minnesota and elsewhere. As alleged in the complaint, he was not registered as a broker-dealer or associated with a registered broker-dealer when selling these securities, as required by the federal securities laws. For his fundraising efforts, Lundervold received a 10% commission on the amount of funds raised, for a total of nearly $900,000.

The SEC's complaint, filed in federal court in Minnesota, charges Lundervold with violating the broker-dealer registration provisions of Section 15(a)(1) of the Securities Exchange Act of 1934. The SEC seeks a permanent injunction, disgorgement of ill-gotten gains with prejudgment interest, and a civil penalty.

The SEC's investigation was conducted by Andrew O'Brien and Pesach Glaser and was supervised by C.J. Kerstetter of the Chicago Regional Office. The SEC's litigation will be led by John Birkenheier.