SEC v. William Rhew III, No. LR-26129, Middle District of North Carolina (Sept. 25, 2024) — Press Release
raw: William Rhew III
William Rhew III, No. 1:24-cv-00771 (Sept. 25, 2024)
The SEC has charged William Rhew III, owner of Chadley Capital LLC, with orchestrating a multi-million dollar fraudulent scheme that defrauded approximately 130 investors of over $28 million between 2
The SEC has charged William Rhew III, owner of Chadley Capital LLC, with orchestrating a multi-million dollar fraudulent scheme that defrauded approximately 130 investors of over $28 million between 2017 and 2023. Rhew allegedly promised guaranteed annual returns of up to 48 percent through purported manufacturing debt investments, but instead used investor funds to finance a lavish lifestyle and personal expenses. To conceal the misappropriation, Rhew provided investors with fictitious account statements showing fabricated profits. The SEC has charged Rhew with violations of the Securities Act of 1933 and the Exchange Act of 1934, seeking a permanent injunction, disgorgement, civil penalties, and a permanent officer-and-director bar.
The SEC has charged William Rhew III, owner of Chadley Capital LLC, with orchestrating a multi-million dollar fraudulent scheme that defrauded approximately 130 investors of over $28 million between 2017 and 2023. Rhew allegedly promised guaranteed annual returns of up to 48 percent through purported manufacturing debt investments, but instead used investor funds to finance a lavish lifestyle and personal expenses. To conceal the misappropriation, Rhew provided investors with fictitious account statements showing fabricated profits. The SEC has charged Rhew with violations of the Securities Act of 1933 and the Exchange Act of 1934, seeking a permanent injunction, disgorgement, civil penalties, and a permanent officer-and-director bar. The SEC has charged William Rhew III with orchestrating a multimillion-dollar fraud scheme involving Chadley Capital LLC, in which he raised over $28 million from approximately 130 investors between November 2017 and December 2023. Rhew allegedly misled investors by offering notes with guaranteed returns of up to 48% through purported manufacturing debt investments, while actually using the funds to pay earlier investors, cover personal luxury expenses, and support an unrelated bankrupt business. To conceal the Ponzi-like structure, he fabricated account statements showing fictitious profits and asset growth. The complaint charges Rhew with violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, seeking permanent injunctions, disgorgement, civil penalties, and an officer-and-director bar. The SEC has charged William Rhew III, owner of Chadley Capital LLC, with defrauding approximately 130 investors of over $28 million through a fraudulent scheme involving purported private manufacturing debt investments. Between 2017 and 2023, Rhew allegedly promised guaranteed annual returns of up to 48 percent but instead diverted funds to pay existing investors, fund a bankrupt retail business, and finance a lavish lifestyle including private jets and luxury real estate. Rhew faces charges for violating the Securities Act of 1933 and the Securities Exchange Act of 1934, specifically regarding the use of fictitious account statements to conceal the fraud. The SEC is seeking a permanent injunction, disgorgement with interest, civil penalties, and a permanent bar from serving as an officer or director of a public company.
Exhibits & Attached Documents (1)
Extracted insights
- $28.00M $28 million $10M–$100M
- person m. graham loomis
- agency Securities and Exchange Commission
- agency the sec's investigation
- agency the sec's litigation
- person william hicks
- company william rhew, iii for defrauding investors in chadley capital llc
- U.S. Securities and Exchange Commission Announce Charges William Rhew, III for defrauding investors in Chadley Capital LLC
- William Rhew, III Raise Funds Over $28 million from approximately 130 investors
- William Rhew, III Use Funds For Making payments to existing investors and funding his lavish lifestyle
- William Rhew, III Use Funds For Paying personal expenses and funding the operating expenses of a now-bankrupt, unrelated retail business
- William Rhew, III Conceal Fraud By creating and providing investors with fictitious account statements
- The Complaint Charge William Rhew, III with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder
- The SEC Seek A permanent injunction, disgorgement with prejudgment interest, civil penalties, an accounting, and a permanent officer-and-director bar
- The SEC Seek An injunction that permanently bars Rhew from participating in the issuance, purchase, offer, or sale of any security, except for purchases and sales in his own personal accounts
- The SEC's Investigation Conducted By Katie Shelton, Krysta Cannon, and Melissa Mitchell
- The SEC's Investigation Supervised By Matthew McNamara and Justin Jeffries
- The SEC's Litigation Led By William Hicks
- The SEC's Litigation Supervised By M. Graham Loomis
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26129 / September 25, 2024 Securities and Exchange Commission v. William Rhew III, No. 1:24-cv-00771 (M.D.N.C. filed Sept. 23, 2024) SEC Charges North Carolina Business Owner with Multimillion-Dollar Fraud The Securities and Exchange Commission today announced charges against Greensboro, North Carolina resident William Rhew, III for defrauding investors in Chadley Capital LLC, a company that Rhew owned and controlled. According to the SEC's complaint, between November 2017 and December 2023, Rhew raised over $28 million from approximately 130 investors by offering notes with guaranteed annual returns of up to 48 percent through purported private investments in manufacturing debts. Instead, the SEC alleges, Rhew used investor funds to make payments to existing investors and fund his lavish lifestyle, including purchasing flights on a private jet, a waterfront home, a Mercedes automobile, and a pleasure boat. The complaint further alleges that Rhew used investor money to pay his personal expenses and fund the operating expenses of a now-bankrupt, unrelated retail business that he owned and controlled. To conceal the fraud, Rhew periodically created and provided investors with fictitious account statements reflecting profits and increased asset values. The complaint, filed in the United States District Court for the Middle District of North Carolina, charges Rhew with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks a permanent injunction, disgorgement with prejudgment interest, civil penalties, an accounting, and a permanent officer-and-director bar. The SEC also seeks an injunction that permanently bars Rhew from participating in the issuance, purchase, offer, or sale of any security, except for purchases and sales in his own personal accounts. The SEC's investigation was conducted by Katie Shelton, Krysta Cannon, and Melissa Mitchell, and supervised by Matthew McNamara and Justin Jeffries. The SEC's litigation will be led by William Hicks and supervised by M. Graham Loomis.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26129 / September 25, 2024 Securities and Exchange Commission v. William Rhew III, No. 1:24-cv-00771 (M.D.N.C. filed Sept. 23, 2024) SEC Charges North Carolina Business Owner with Multimillion-Dollar Fraud The Securities and Exchange Commission today announced charges against Greensboro, North Carolina resident William Rhew, III for defrauding investors in Chadley Capital LLC, a company that Rhew owned and controlled. According to the SEC's complaint, between November 2017 and December 2023, Rhew raised over $28 million from approximately 130 investors by offering notes with guaranteed annual returns of up to 48 percent through purported private investments in manufacturing debts. Instead, the SEC alleges, Rhew used investor funds to make payments to existing investors and fund his lavish lifestyle, including purchasing flights on a private jet, a waterfront home, a Mercedes automobile, and a pleasure boat. The complaint further alleges that Rhew used investor money to pay his personal expenses and fund the operating expenses of a now-bankrupt, unrelated retail business that he owned and controlled. To conceal the fraud, Rhew periodically created and provided investors with fictitious account statements reflecting profits and increased asset values. The complaint, filed in the United States District Court for the Middle District of North Carolina, charges Rhew with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks a permanent injunction, disgorgement with prejudgment interest, civil penalties, an accounting, and a permanent officer-and-director bar. The SEC also seeks an injunction that permanently bars Rhew from participating in the issuance, purchase, offer, or sale of any security, except for purchases and sales in his own personal accounts. The SEC's investigation was conducted by Katie Shelton, Krysta Cannon, and Melissa Mitchell, and supervised by Matthew McNamara and Justin Jeffries. The SEC's litigation will be led by William Hicks and supervised by M. Graham Loomis.