SEC v. Linda Woolf; David Gengler; Hands On Capital, Inc.; and Lashaico, Inc., No. LR-20486, Eastern District of Virginia (Mar. 11, 2008) — Press Release
raw: Linda Woolf, David Gengler, Hands On Capital, Inc., and Lashaico, Inc.
Linda Woolf, David Gengler, Hands On Capital, Inc., and Lashaico, Inc., No. LR-20486 (Mar. 11, 2008)
Linda Woolf and David Gengler defrauded investors by falsely claiming trading success and a 96.5% win rate for their 'Teach Me to Trade' workshops, convincing people to spend $11,000–$40,000 on worthless courses and software, netting them $4 million and $2.25 million respectively, leading to SEC civil charges and criminal prosecution.
The SEC charged Linda Woolf, David Gengler, and their corporations, Hands On Capital, Inc. and Lashaico, Inc., with securities fraud for deceiving investors through false claims in 'Teach Me to Trade' infomercials and workshops. Woolf and Gengler misrepresented their own trading success and fabricated a 96.5% success rate for TMTT students, while targeting retirees and urging them to liquidate retirement accounts to buy packages priced between $11,000 and $40,000; Woolf allegedly earned $4 million and Gengler $2.25 million from these sales. They were charged with violating Section 10(b) and Rule 10b-5 of the Securities Exchange Act, with the SEC seeking disgorgement, civil penalties, and permanent injunctions, while the U.S. Attorney’s Office filed parallel criminal charges.
Linda Woolf and David Gengler, former speakers for the 'Teach Me to Trade' (TMTT) workshops, orchestrated a securities fraud scheme by falsely portraying themselves as successful traders and claiming a 96.5% success rate for students who purchased TMTT packages, despite having no legitimate trading profits. They used televised infomercials and live workshops between 2003 and 2006 to deceive investors, many of them retirees, into spending $11,000 to $40,000 on mentoring, software, and classes that promised extraordinary returns through options and swing trading. In reality, their wealth came not from trading but from selling these fraudulent packages—Woolf reportedly made $4 million and Gengler $2.25 million. Gengler actively encouraged investors to cash out retirement accounts to fund their purchases, while Woolf specifically targeted vulnerable populations. The SEC alleged that their claims of personal success and student outcomes were entirely fabricated, with no factual basis for the purported success rate. The Commission charged Woolf, Gengler, and their corporations, Hands On Capital, Inc. and Lashaico, Inc., with violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act, seeking disgorgement of ill-gotten gains, civil penalties, and permanent injunctions. In a related action, the U.S. Attorney’s Office for the Eastern District of Virginia filed criminal charges against both individuals, and the investigation remains ongoing with assistance from the U.S. Postal Inspection Service and the Florida Attorney General’s Office.
Exhibits & Attached Documents (1)
Extracted insights
- $4.00M $4 million $1M–$10M
- $2.25M $2.25 million $1M–$10M
- $40K $40,000 $10K–$100K
- $11K $11,000 $10K–$100K
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- Securities and Exchange Commission filed civil fraud charges against Linda Woolf and David Gengler
- SEC sued former "Teach Me to Trade" workshop speakers for securities fraud
- Linda Woolf and David Gengler were former speakers for "Teach Me to Trade" securities trading workshops
- Litigation Release No. 20486 was issued on March 11, 2008
- Securities and Exchange Commission sued Linda Woolf, David Gengler, Hands On Capital, Inc., and Lashaico, Inc.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 20486 / March 11, 2008 Securities and Exchange Commission v. Linda Woolf, David Gengler, Hands On Capital, Inc., and Lashaico, Inc., Civil Action No. 1:08cv235 GBL/BRP SEC Sues Former "Teach Me to Trade" Workshop Speakers For Securities Fraud The Securities and Exchange Commission today filed civil fraud charges against Linda Woolf and David Gengler, former speakers for "Teach Me to Trade" ("TMTT") securities trading workshops. The Commission also charged Woolf's and Gengler's corporations, Hands On Capital, Inc., and Lashaico, Inc. The Commission's complaint alleges that Woolf and Gengler made false and misleading statements in televised infomercials and investor workshops to dupe investors into believing they would make extraordinary profits trading securities if they purchased TMTT products and services. TMTT â" a unit of Whitney Information Network, Inc., a publicly traded company based in Cape Coral, Florida â" conducts nationwide investor workshops that purport to teach investors the secrets to making money in the stock market. Woolf and Gengler, both residents of Utah, misrepresented, among other things, their own success trading securities as well as the success rate of others who purchased TMTT packages that consisted of securities trading mentoring, software and classes. The Commission's complaint alleges that during workshop presentations made between approximately 2003 and 2006 â" some of which were captured on videotape â" Woolf and Gengler used lies and misrepresentations in order to sell expensive TMTT packages of personal mentoring, software and classes for prices ranging from approximately $11,000 to $40,000. According to the Commission's complaint, Woolf and Gengler appeared in television infomercials portraying themselves as successful former TMTT customers. The complaint also alleges that at the workshops, Woolf and Gengler expanded on their false claims about their success as securities traders. They misrepresented to audiences that they themselves had purchased personal mentoring, classes and software to learn to trade, and quickly profited by trading securities. Woolf targeted retirees, among others. Gengler urged investors to liquidate their retirement accounts to follow TMTT strategies. Through false stories of their own success and false claims of a 96.5% success rate for TMTT students who purchased personal mentoring, courses and software, Woolf and Gengler convinced investors that they too would make money in the stock market if they followed TMTT's trading strategies that emphasized options trading and short-term swing trading. In fact, the Commission alleges, Woolf's and Gengler's tales of trading success were not true. In reality, they are unsuccessful traders whose wealth came not from trading securities but from selling expensive TMTT packages. Woolf's and Gengler's claims about a 96.5% success rate of others who purchased certain TMTT packages and followed TMTT's trading strategies also had no basis in fact. The complaint alleges that Woolf reaped approximately $4 million from selling TMTT packages, and Gengler made approximately $2.25 million. The Commission's complaint alleges that Woolf, Gengler, Hands On Capital, Inc., and Lashaico Inc. violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint also seeks disgorgement of ill-gotten gains, civil money penalties and permanent injunctions enjoining the defendants from violating the antifraud provisions of the federal securities laws. In a related action, the U.S. Attorney's Office for the Eastern District of Virginia today announced the filing of criminal charges against Woolf and Gengler based on their misrepresentations at TMTT workshops. The Commission acknowledges the assistance of the U.S. Attorney's Office for the Eastern District of Virginia, the U.S. Postal Inspection Service, and the Florida Attorney General's Office. The Commission's investigation is continuing. SEC Complaint in this matterU.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 20486 / March 11, 2008 Securities and Exchange Commission v. Linda Woolf, David Gengler, Hands On Capital, Inc., and Lashaico, Inc., Civil Action No. 1:08cv235 GBL/BRP SEC Sues Former "Teach Me to Trade" Workshop Speakers For Securities Fraud The Securities and Exchange Commission today filed civil fraud charges against Linda Woolf and David Gengler, former speakers for "Teach Me to Trade" ("TMTT") securities trading workshops. The Commission also charged Woolf's and Gengler's corporations, Hands On Capital, Inc., and Lashaico, Inc. The Commission's complaint alleges that Woolf and Gengler made false and misleading statements in televised infomercials and investor workshops to dupe investors into believing they would make extraordinary profits trading securities if they purchased TMTT products and services. TMTT â" a unit of Whitney Information Network, Inc., a publicly traded company based in Cape Coral, Florida â" conducts nationwide investor workshops that purport to teach investors the secrets to making money in the stock market. Woolf and Gengler, both residents of Utah, misrepresented, among other things, their own success trading securities as well as the success rate of others who purchased TMTT packages that consisted of securities trading mentoring, software and classes. The Commission's complaint alleges that during workshop presentations made between approximately 2003 and 2006 â" some of which were captured on videotape â" Woolf and Gengler used lies and misrepresentations in order to sell expensive TMTT packages of personal mentoring, software and classes for prices ranging from approximately $11,000 to $40,000. According to the Commission's complaint, Woolf and Gengler appeared in television infomercials portraying themselves as successful former TMTT customers. The complaint also alleges that at the workshops, Woolf and Gengler expanded on their false claims about their success as securities traders. They misrepresented to audiences that they themselves had purchased personal mentoring, classes and software to learn to trade, and quickly profited by trading securities. Woolf targeted retirees, among others. Gengler urged investors to liquidate their retirement accounts to follow TMTT strategies. Through false stories of their own success and false claims of a 96.5% success rate for TMTT students who purchased personal mentoring, courses and software, Woolf and Gengler convinced investors that they too would make money in the stock market if they followed TMTT's trading strategies that emphasized options trading and short-term swing trading. In fact, the Commission alleges, Woolf's and Gengler's tales of trading success were not true. In reality, they are unsuccessful traders whose wealth came not from trading securities but from selling expensive TMTT packages. Woolf's and Gengler's claims about a 96.5% success rate of others who purchased certain TMTT packages and followed TMTT's trading strategies also had no basis in fact. The complaint alleges that Woolf reaped approximately $4 million from selling TMTT packages, and Gengler made approximately $2.25 million. The Commission's complaint alleges that Woolf, Gengler, Hands On Capital, Inc., and Lashaico Inc. violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint also seeks disgorgement of ill-gotten gains, civil money penalties and permanent injunctions enjoining the defendants from violating the antifraud provisions of the federal securities laws. In a related action, the U.S. Attorney's Office for the Eastern District of Virginia today announced the filing of criminal charges against Woolf and Gengler based on their misrepresentations at TMTT workshops. The Commission acknowledges the assistance of the U.S. Attorney's Office for the Eastern District of Virginia, the U.S. Postal Inspection Service, and the Florida Attorney General's Office. The Commission's investigation is continuing. SEC Complaint in this matter