SEC Charges Entrepreneurs With Fraudulent Securities Offerings

The Securities and Exchange Commission today charged Brett M. Bartlett, his father-in-law Scott A. Miller, and their companies, Dynasty Toys Inc., The 7M eGroup Corp., Concept Management Company LLC, and Dynasty Inc. with fraud for running a fraudulent securities offering that raised $20.5 million from over 1,000 investors. According to the SEC, Bartlett and Miller misrepresented their success and attributed it to divine intervention to win investor trust. When some investors began to demand cash, they used Ponzi-like payments as well as bad checks with insufficient funds to pay them off. In addition, the defendants are accused of misappropriating more than $1.2 million for personal use. The SEC is seeking an injunction, disgorgement of funds including prejudgment interest, civil penalties, and officer and director bars. In addition, Bartlett, Miller, and their companies face criminal charges from the U.S. Attorney’s Office for the Central District of Illinois. The SEC has also issued Investor Alerts to help potential investors avoid becoming victims of this type of fraud.