On September 1, 2020, an indictment against Phillip W. Conley, a West Virginia-based former registered representative who was charged by the SEC in an enforcement action filed on April 16, 2020, was unsealed in a parallel criminal action on six counts of mail fraud and one count of securities fraud in connection with a $5.2 million fraudulent securities offering. The criminal indictment, which was unsealed this week, arises from the same conduct alleged in the SEC's civil action.

The SEC's complaint, filed in federal district court for the Northern District of West Virginia, alleges that Conley induced investors to purchase fraudulent investments and lied about the use of investor proceeds. The complaint further alleges that Conley comingled investor funds in bank accounts that he controlled and used most of the funds for his personal benefit, while using the remainder to make Ponzi-like payments to earlier investors. The complaint charges Conley with violations of the antifraud provisions of the federal securities laws and seeks permanent injunctions, disgorgement of ill-gotten gains, prejudgment interest, and civil monetary penalties against Conley. The SEC's litigation against Conley remains ongoing.

The SEC's investigation was conducted by Michael F. McGraw and Brendan P. McGlynn in the Philadelphia Regional Office, and was supervised by Kelly L. Gibson. The litigation is being led by Jennifer C. Barry and Karen M. Klotz.