SEC Charges "Millionaire Maker" Author with Selling Securities in Unregistered Oil and Gas Offerings
Lit. Release No. 25425 / June 15, 2022
Securities and Exchange Commission v. Loral L. Langemeier and Live Out Loud, Inc., No. 3:22-cv-00269 (D. Nev. filed June 15, 2022)
The Securities and Exchange Commission today charged Loral L. Langemeier and her company, Live Out Loud, Inc. ("LOL"), with selling securities in unregistered oil and gas offerings, acting as unregistered securities brokers, and breaching their fiduciary duties as investment advisers by failing to disclose to clients financial conflicts of interests.
According to the SEC's complaint, filed in federal district court in Reno, Nevada, from at least 2016 through 2018, Langemeier held herself out as a financial expert and, through LOL, developed a roster of clients - mainly small business owners and retirees - who paid fees of up to $30,000 in exchange for Langemeier's supposedly objective financial advice. Langemeier allegedly convinced many of these clients to liquidate relatively conservative investments, transfer their funds to self-directed IRAs, and purchase securities in risky and unregistered oil and gas securities offerings sponsored by Resolute Capital Partners LTD, LLC and Homebound Resources, LLC. These companies and their principals were the subject of a prior SEC enforcement action, In the Matter of Resolute Capital Partners, LTD, LLC, et al., AP File No. 3-20597 (Sept. 24, 2021). The complaint further alleges that Langemeier received hundreds of thousands of dollars in undisclosed compensation in the form of sales commissions when her clients purchased the oil and gas securities and that she held undisclosed equity interests in certain of the issuers of the securities. According to the SEC's complaint, defendants breached their fiduciary duties as investment advisers by failing to disclose these conflicts of interest to their clients.
The SEC's complaint, filed in federal district court in Reno, Nevada, charges Langemeier and LOL with violating Sections 5(a) and 5(c) of the Securities Act of 1933, Section 15(a) of the Securities Exchange Act of 1934, and Section 206(2) of the Investment Advisers Act of 1940. The SEC seeks injunctive relief, disgorgement with prejudgment interest, and civil penalties.
The SEC's investigation was conducted by Brian Fitzsimons and Brian Vann with assistance from Joshua Braunstein, James Smith, Dean Conway, Donato Furlano, and Deborah Russell. The investigation was supervised by Carolyn M. Welshhans and Brian O. Quinn. The litigation will be led by Duane K. Thompson and Mr. Fitzsimons, and supervised by James M. Carlson. The SEC appreciates the assistance of the Nevada Securities Division, the Securities Division of the Washington State Department of Financial Institutions, and the Financial Industry Regulatory Authority.