SEC to seek $1.6M in disgorgement from Renwick Haddow cooperator
The Securities and Exchange Commission (SEC) has filed a status report with the New York Southern District Court regarding its action against James Moore, an accomplice of Ponzi scammer Renwick Haddow, and his company Universal Voicetech, Inc.
The document, submitted at the Court on March 16, 2022, makes it clear that the regulator will seek $1.6 million in disgorgement from the defendants.
Let’s recall that the Commission’s Complaint alleges that Moore and Universal Voicetech, Inc., a company Moore controlled, aided and abetted an offering fraud perpetrated by Renwick Haddow in violation of Section 17(a) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 77q(a)] and Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [15 U.S.C. § 240.10b-5].
The Complaint alleges that Haddow (who has now pled guilty to wire fraud and conspiracy to commit wire fraud in a related criminal matter and reached a partial resolution with the Commission), sold investors interests in a company known as “Bar Works,” which purported to provide co-working spaces in converted restaurants and bars. Haddow and others made material misrepresentations in marketing materials sent to investors about Bar Works while raising over $37 million from investors.
Among other things, Bar Works’ website and offering memoranda touted the experience of its CEO, “Jonathan Black,” and omitted any mention of Haddow, when in fact “Black” was fictitious and Haddow, who actually controlled Bar Works, had been sued for a previous illegal investment scheme by the Financial Conduct Authority in the U.K. Haddow subsequently misappropriated the vast majority of the investors’ funds.
Moore and Voicetech aided and abetted Haddow in his fraudulent scheme by interfacing with and finding sales agents who solicited investments in Bar Works. Moore knew that the marketing materials he and his agents used to solicit investments in Bar Works omitted Haddow’s name and instead listed a fictitious name and background when describing “Black,” the company’s purported CEO.
Moore has filed an Answer. Voicetech is in default.
The Commission does not seek damages but does seek monetary relief (among other things) in the form of disgorgement, prejudgment interest on the disgorgement amount, and a civil penalty. Moore and Voicetech helped to raise over $5 million from dozens of investors. In return, Moore and Voicetech received approximately $1.6 million in commissions from Bar Works. The Commission requests this latter amount in disgorgement with prejudgment interest and a civil penalty to be determined at an appropriate time.
The SEC says it has reached out to Moore several times with a proposed offer of settlement. However, the Commission has not heard back from Moore on the proposed terms. The SEC suggests a settlement conference before a magistrate judge to discuss settlement.