Premier Holding Corp. and Its CEO Ordered to Pay More Than $10 Million for Securities Fraud
Litigation Release No. 25021 / February 2, 2021
Securities and Exchange Commission v. Premier Holding Corporation, Randall Letcavage and Joseph Greenblatt, SACV 18-00813-CJC (KESx) (C.D.CA. filed Dec. 4, 2017)
On January 20, 2021, United States District Judge Cormac J. Carney of the Central District of California entered final judgments against microcap issuer Premier Holding Corp. and its CEO, Randall Letcavage, in connection with a fraudulent scheme to mislead Premier's investors about the company's financial health. The final judgments impose, among other relief, monetary relief totaling more than $10.5 million, as well as an officer and director bar against Letcavage.
The SEC's complaint, filed on December 4, 2017, alleged that Premier, a California-based company that describes itself as a green energy services provider, and Letcavage, Premier's CEO, orchestrated a series of transactions with related parties intended to create the false appearance of an active company with a vibrant and promising business. On November 30, 2020, the court granted summary judgment to the Commission, finding that Premier and Letcavage materially misled investors about the value of Premier's assets, including a purportedly significant promissory note that was actually worthless. The court further found that Premier and Letcavage misled investors by failing to disclose over $92,000 of perks provided to Letcavage.
On January 20, 2020, the court entered final judgments against Premier and Letcavage that (1) permanently enjoin them from violating Section 17(a) of the Securities Act of 1933 and Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 10b-5, 13a-1, 13a-11, and 13a-13 thereunder; (2) hold them jointly and severally liable for disgorgement and prejudgment interest totaling $8,691,500; and (3) order them to each pay a $1 million penalty. The judgment against Letcavage also enjoins Letcavage from violating Section 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder and imposes an officer and director bar and a penny stock bar.