SEC Charges Motion Picture Financier with Fraud
Litigation Release No. 24895 / September 14, 2020
Securities and Exchange Commission v. Remington Chase a/k/a William Westwood a/k/a William Elliott, Case No. 2:20-cv-08343 (C.D. Cal. filed September 11, 2020)
The Securities and Exchange Commission today announced settled charges against Remington Chase for fraudulently misappropriating millions of dollars from investors.
The SEC's complaint alleges that Chase, through his company Knightsbridge Entertainment, Inc., sold over $62 million in high-yield, short-term promissory notes to approximately 100 investors. According to the complaint, Chase, then a California resident, told investors that their funds would be allocated to provide short-term, post-production financing to motion picture companies. However, as alleged in the complaint, Chase used the majority of the funds for purposes unrelated to movie financing. Chase is alleged to have spent almost $9 million on personal expenses, including making donations to a university and purchasing several Tesla automobiles.
The SEC's complaint, filed in federal court in California, charges Chase with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder and Sections 17(a)(1) and (3) of the Securities Act of 1933 and the registration provisions of Section 5 of the Securities Act. Without admitting or denying the SEC's allegations, Chase has consented to a permanent injunction barring him from violating the charged provisions. Chase also agreed to pay $8,906,000 in disgorgement plus $1,022,010 in prejudgment interest and a civil penalty of $192,768. The settlement is subject to court approval.
The SEC's investigation was conducted by Peter Del Greco and supervised by Marc Blau of the Los Angeles Regional Office.