Unregistered Offering: A Warning of Potential Scam Activity

The Securities and Exchange Commission (SEC) has filed a complaint against Chris Hollender, Michael Migliano, and Isabella Vecchio for allegedly engaging in unregistered sales activities in connection with investments promised to investors that were offered through their series LLCs. The SEC alleges that the defendants solicited at least $13 million from 115 investors by providing them with marketing materials and promising them returns on their investments that never materialized. Furthermore, the SEC alleges that the defendants collected approximately $3.7 million in transaction-based compensation, while falsely telling investors there were no upfront fees associated with their investments. The complaint seeks permanent injunctive relief, return of any ill-gotten gains, and civil penalties from the defendants. It also names two entities controlled by Hollender and Vecchio, namely GSH Empire Inc. and 21st Century Gold & Silver Inc., as relief defendants responsible for recovering ill-gotten gains generated by the alleged misconduct of Hollender and Vecchio. The SEC is dedicating its New York Regional Office to investigating this case further, in addition to receiving assistance from other investigators and regulators, such as the Financial Industry Regulatory Authority, the Office of the Montana State Auditor, Commission on Securities and Insurance, and the New Jersey Bureau of Securities.