SEC v. Ronald D. Swanson, No. LR-25711, District of Columbia (May 5, 2023) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25711 / May 5, 2023 Securities and Exchange Commission v. Ronald D. Swanson, No. 3:20-cv-00666-KAD (D. Conn. Filed May 14, 2020) SEC Obtains Judgment Against Former CEO and General Counsel Who Raised Millions of Dollars from Investors Through False Statements On May 3, 2023, the United States District Court for the District of Connecticut entered a final judgment against former Connecticut resident Ronald D. Swanson ordering him to pay over $927,000 in disgorgement and penalties in a securities offering fraud action previously filed by the SEC in May 2020. The Court also ordered Swanson barred from serving as the officer or director of a publicly-traded company for a period of 10 years. The SEC's complaint alleged that Swanson fraudulently raised more than $2 million from investors between October 2012 and August 2015 by making false and misleading statements about Texas-based liquid purification technology company Sonic Cavitation, Inc. The complaint alleged that while serving as the chief executive officer and general counsel of Sonic Cavitation, Swanson made multiple false claims exaggerating the interest level of Sonic Cavitation's potential business partners and the capabilities of its technology, and minimizing the risk level of its investment offerings. Swanson had previously consented, without admitting or denying the allegations in the complaint, to the entry of a final judgment in the SEC action that permanently enjoined him from violating the antifraud provisions of 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 upon the entry of the final judgment by the Court. Swanson had also consented to the imposition of penalties, disgorgement, prejudgment interest, and a bar from serving as an officer and director of a public company, with the amounts and durations of those remedies to be determined by the Court. The judgment issued by the District Court after a hearing bars Swanson from serving as an officer or director of any public company for ten years, and finds him liable for disgorgement of $677,753, plus prejudgment interest in an amount to be determined, and a civil penalty of $250,000. The SEC's case was handled by Rua Kelly, Marc Jones, Dawn Edick, and Amy Gwiazda of the Boston Regional Office. The civil action followed an examination in a related matter conducted by Maria Pimentel Viana and Kenneth Leung of the Boston Regional Office. The SEC appreciates the assistance that the District of Columbia Bar's Office of Disciplinary Counsel provided in this matter.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25711 / May 5, 2023 Securities and Exchange Commission v. Ronald D. Swanson, No. 3:20-cv-00666-KAD (D. Conn. Filed May 14, 2020) SEC Obtains Judgment Against Former CEO and General Counsel Who Raised Millions of Dollars from Investors Through False Statements On May 3, 2023, the United States District Court for the District of Connecticut entered a final judgment against former Connecticut resident Ronald D. Swanson ordering him to pay over $927,000 in disgorgement and penalties in a securities offering fraud action previously filed by the SEC in May 2020. The Court also ordered Swanson barred from serving as the officer or director of a publicly-traded company for a period of 10 years. The SEC's complaint alleged that Swanson fraudulently raised more than $2 million from investors between October 2012 and August 2015 by making false and misleading statements about Texas-based liquid purification technology company Sonic Cavitation, Inc. The complaint alleged that while serving as the chief executive officer and general counsel of Sonic Cavitation, Swanson made multiple false claims exaggerating the interest level of Sonic Cavitation's potential business partners and the capabilities of its technology, and minimizing the risk level of its investment offerings. Swanson had previously consented, without admitting or denying the allegations in the complaint, to the entry of a final judgment in the SEC action that permanently enjoined him from violating the antifraud provisions of 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 upon the entry of the final judgment by the Court. Swanson had also consented to the imposition of penalties, disgorgement, prejudgment interest, and a bar from serving as an officer and director of a public company, with the amounts and durations of those remedies to be determined by the Court. The judgment issued by the District Court after a hearing bars Swanson from serving as an officer or director of any public company for ten years, and finds him liable for disgorgement of $677,753, plus prejudgment interest in an amount to be determined, and a civil penalty of $250,000. The SEC's case was handled by Rua Kelly, Marc Jones, Dawn Edick, and Amy Gwiazda of the Boston Regional Office. The civil action followed an examination in a related matter conducted by Maria Pimentel Viana and Kenneth Leung of the Boston Regional Office. The SEC appreciates the assistance that the District of Columbia Bar's Office of Disciplinary Counsel provided in this matter.