SEC Charges Individual for Engaging in IIIegal Unregistered Offering
Litigation Release No. 25036 / February 24, 2021
Securities and Exchange Commission v. Glen A. Stewart, No. 1:21-cv-00550 (D. Colo. filed February 24, 2021)
The Securities and Exchange Commission today announced charges against Glen A. Stewart, CEO of Colorado-based Wiser Investments, Inc., for acting as an unregistered broker and illegally selling Wiser securities in unregistered transactions to retail investors.
According to the SEC's complaint, from at least August 2017 through October 2019, Stewart raised approximately $558,867 through the offer and sale of convertible notes and stock issued by Wiser Investments and its successor entity Wiser Investments, Inc. to approximately 39 investors who he identified through his tax advisory company. In connection with these sales, Stewart allegedly received $45,853.50 in transaction-based compensation. In offering and selling the securities, Stewart allegedly, conducted sales meetings with prospective investors and advised them on the merits of the investment. The complaint alleges that at the time Stewart offered and sold Wiser securities, the offering was not registered with the Commission and was not exempt from registration, and Stewart was not registered as a broker or dealer with the Commission or associated with a registered broker-dealer.
Stewart has consented to the entry of a judgment that, among other things, permanently enjoins him from violating the registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933 and Section 15(a)(1) of the Securities Exchange Act of 1934. The judgment orders Stewart to pay disgorgement of $45,853 with prejudgment interest of $5,727 and a civil penalty of $25,000.
The SEC's investigation has been conducted by Michael D. Hoke and Nicholas Heinke and supervised by Kimberly L. Frederick and Jason J. Burt of the SEC's Denver Regional Office.