The SEC concluded its litigation with a father – daughter combination that solicited investors to purchase promissory notes based on representations that there would be risk free returns from forex trading. There were no returns, however, and most of the funds went to the father daughter tandem. SEC v. Pameijer, Case No. 1:12-CV-01364 (S.D. In. Filed Sept. 24, 2012).
The action named as defendants Rudolf Pameijer, Lindsay Sayer and Ryan Koester and his controlled entity Rykoworks Capital Group LLC. Beginning in 2010 Mr. Pameijer and his daughter, Ms. Sayer, solicited clients to invest in Rykoworks by purchasing promissory notes. The notes were supposed to guarantee investor principal while offering risk free returns from forex trading. Mr. Koester represented that he was an expert foreign currency trader and that his plan had guaranteed results.
In fact the defendants misappropriated about $1.7 million from investors. The complaint alleged violations of Securities Act Section 17(a) and Exchange Act Sections 10(b) and 15(a). Father and daughter settled by consenting to the entry of permanent injunctions prohibiting future violations of the Sections cited in the complaint and to the entry of orders barring them from the securities business and from participating in a penny stock offering.
The Court determined issues regarding monetary liability. Last week the Court entered an order based on the settlements of Mr. Pameijer and Ms. Sayer, enjoining them from future violations of Exchange Act Section 10(b) and Securities Act Section 17(a). In addition, Mr. Pameijer will pay disgorgement of $1,226,703 along with prejudgment interest but no civil penalty in view of his sentence in the parallel criminal case. Ms. Sayer agreed to pay disgorgement of $90,822 along with prejudgment interest. A penalty was waived based on financial condition. The other parties in the action previously settled. See Lit. Rel. No. 23251 (May 1, 2015).