2024-08-21 sec-litreleases litigation_release 65 KB 2,310 chars

SEC v. Wayne H. McLean; and Joan E. Powell, No. LR-26081, Southern District of New York (Aug. 21, 2024) — Press Release

raw: Wayne H. McLean and Joan E. Powell

Wayne H. McLean and Joan E. Powell, No. 2:23-cv-02333 (E.D.N.Y. Aug. 21, 2024)

Caption
Securities and Exchange Commission v. Wayne H. McLean and Joan E. Powell
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summary

Wayne H. McLean and Joan E. Powell received final judgments for facilitating a multi-million dollar fraud involving the sale of purported Eastern Metal Securities shares.

paragraph

The SEC obtained final judgments against McLean and Powell for their roles in a scheme involving Eastern Metal Securities (EMS) shares. McLean was ordered to pay $199,17ly7 in disgorgement, $31,436.48 in interest, and a $40,000 penalty, while Powell must pay $39,815 in disgorgement, $6,284.02 in interest, and a $25,000 penalty. Both individuals are enjoined from future securities law violations and prohibited from serving as officers or directors of public companies.

narrative

The U.S. District Court for the Southern District of New York entered final judgments against Wayne H. McLean and Joan E. Powell for facilitating a multi-million dollar fraud involving Eastern Metal Securities (EMS). Between 2012 and 2019, Roger Nils-Karlsson orchestrated a scheme selling EMS shares falsely claimed to be backed by a unique 'Pre Funded Reversed Pension Plan.' McLean used podcasts to make misleading solicitations, while Powell collected and forwarded investor funds to accounts controlled by Karlsson. Both defendants retained portions of the investment funds for their personal use despite claiming they were unremunerated. The court's judgment prohibits both from future violations of the Securities Act of 1933 and the Exchange Act of 1934, as well as serving as officers or directors of public companies. McLean was ordered to pay a total of $270,615.48 in disgorgement, interest, and penalties, while Powell was ordered to pay $71,099.02.

Enriched metadata

Scheme
pre-ipo-fraud (95%)
Court
Southern District of New York
Case No.
2:23-cv-02333
Disgorgement
$199,179
Civil penalty
$40,000
Entity
Wayne H. McLean
Classified pre-ipo-fraud(confidence 95%). EDGAR detection: forms S-1/Form D/1-A· recall 72% / precision 8%. detection rule →
Statutes
Sections 17(a) of the Securities ActSection 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionWayne H. McLeanJoan E. Powell
Keywords
mcleanpowellwayne mcleanmclean joanjoan powellfinal judgmentssecuritiessecurities exchangemclean powellwaynejoansecfinaljudgmentsscheme

Exhibits & Attached Documents (2)

Extracted insights

Dollar amounts 6
  • $199K $199,179 $100K–$1M
  • $40K $40,000 $10K–$100K
  • $40K $39,815 $10K–$100K
  • $31K $31,436 $10K–$100K
  • $25K $25,000 $10K–$100K
  • $6K $6,284 <$10K
Entities 5
  • person final judgments
  • person joan e. powell
  • agency Securities and Exchange Commission
  • court u.s. district court for the southern district of new york
  • person Wayne H. Mclean
Triples 10
  • U.S. Securities And Exchange Commission obtained final judgments against Wayne H. McLean and Joan E. Powell
  • Roger Nils-Karlsson orchestrated a fraudulent scheme to sell purported shares of Eastern Metal Securities (EMS)
  • Wayne H. McLean offered and sold EMS securities to investors through podcasts with false and misleading statements
  • Joan E. Powell collected and forwarded investor money to accounts controlled by Roger Nils-Karlsson
  • Wayne H. McLean and Joan E. Powell retained a portion of investment funds for their own personal use despite claiming no remuneration
  • U.S. District Court for the Southern District of New York entered final judgments against Wayne H. McLean and Joan E. Powell
  • Final judgments enjoin Wayne H. McLean and Joan E. Powell from future violations of Sections 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
  • Final judgments prohibit Wayne H. McLean and Joan E. Powell from acting as an officer or director of a public company
  • Final judgments order Wayne H. McLean to pay disgorgement of $199,179, plus prejudgment interest of $31,436.48, and a civil penalty of $40,000
  • Final judgments order Joan E. Powell to pay disgorgement of $39,815, plus prejudgment interest of $6,284.02, and a civil penalty of $25,000
PDF (from attached: judgment)
SEC v. WAYNE H. MCLEAN · Source
Text layers
Extracted body text (2,310c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26081 / August 21, 2024 Securities and Exchange Commission v. Wayne H. McLean and Joan E. Powell, No. 2:23-cv-02333 (E.D.N.Y. filed Mar. 27, 2023) SEC Obtains Final Judgments Against Two Individuals Who Helped Facilitate Multi-Million Dollar Offering Fraud On August 21, 2024, the U.S. District Court for the Southern District of New York entered final judgments against Wayne H. McLean and Joan E. Powell for facilitating a fraudulent scheme to sell purported shares of Eastern Metal Securities (EMS). The SEC previously charged Roger Nils-Karlsson in connection with the EMS scheme that victimized thousands of retail investors worldwide. According to the SEC’s complaint, filed on March 27, 2023, from on or about November 2012 to June 2019, Karlsson, using various aliases, orchestrated a fraudulent scheme in which he offered and sold EMS shares, purportedly backed by a “Pre Funded Reversed Pension Plan” that he claimed to be the world’s first online investment of its kind. Karlsson’s scheme was allegedly facilitated by McLean and Powell. McLean allegedly offered and sold EMS securities to investors, by making solicitations through podcasts that made materially false and misleading statements. As alleged, Powell collected and forwarded investor money to accounts controlled by Karlsson, and McLean and Powell retained a portion of the investment funds for their own personal use despite claiming that they were performing these functions without remuneration. The final judgments enjoin McLean and Powell from future violations of Sections 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and prohibits them from acting as an officer or director of a public company. The final judgments also order McLean to pay disgorgement in the amount of $199,179, plus prejudgment interest of $31,436.48, and a civil penalty of $40,000 and order Powell to pay disgorgement in the amount of $39,815, plus prejudgment interest of $6,284.02, and a civil penalty of $25,000. The SEC’s litigation was conducted by John C. Lehmann, Jordan Baker, Chevon Walker, and Lindsay S. Moilanen and supervised by Preethi Krishnamurthy and Thomas P. Smith, Jr. of the New York Regional Office.
OCR text (2,310c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26081 / August 21, 2024 Securities and Exchange Commission v. Wayne H. McLean and Joan E. Powell, No. 2:23-cv-02333 (E.D.N.Y. filed Mar. 27, 2023) SEC Obtains Final Judgments Against Two Individuals Who Helped Facilitate Multi-Million Dollar Offering Fraud On August 21, 2024, the U.S. District Court for the Southern District of New York entered final judgments against Wayne H. McLean and Joan E. Powell for facilitating a fraudulent scheme to sell purported shares of Eastern Metal Securities (EMS). The SEC previously charged Roger Nils-Karlsson in connection with the EMS scheme that victimized thousands of retail investors worldwide. According to the SEC’s complaint, filed on March 27, 2023, from on or about November 2012 to June 2019, Karlsson, using various aliases, orchestrated a fraudulent scheme in which he offered and sold EMS shares, purportedly backed by a “Pre Funded Reversed Pension Plan” that he claimed to be the world’s first online investment of its kind. Karlsson’s scheme was allegedly facilitated by McLean and Powell. McLean allegedly offered and sold EMS securities to investors, by making solicitations through podcasts that made materially false and misleading statements. As alleged, Powell collected and forwarded investor money to accounts controlled by Karlsson, and McLean and Powell retained a portion of the investment funds for their own personal use despite claiming that they were performing these functions without remuneration. The final judgments enjoin McLean and Powell from future violations of Sections 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and prohibits them from acting as an officer or director of a public company. The final judgments also order McLean to pay disgorgement in the amount of $199,179, plus prejudgment interest of $31,436.48, and a civil penalty of $40,000 and order Powell to pay disgorgement in the amount of $39,815, plus prejudgment interest of $6,284.02, and a civil penalty of $25,000. The SEC’s litigation was conducted by John C. Lehmann, Jordan Baker, Chevon Walker, and Lindsay S. Moilanen and supervised by Preethi Krishnamurthy and Thomas P. Smith, Jr. of the New York Regional Office.

Related documents (2)