SEC v. Brett M. Bartlett; Scott A. Miller; Dynasty Toys, Inc.; The 7M eGroup Corp.; Concept Management Company LLC; and Dynasty, Inc., No. LR-25705, Central District of California (May 3, 2023) — Press Release
raw: Brett M. Bartlett; Scott A. Miller; Dynasty Toys, Inc.; The 7M eGroup Corp.; Concept Management Company LLC; Dynasty, Inc.
Brett M. Bartlett; Scott A. Miller; Dynasty Toys, Inc.; The 7M eGroup Corp.; Concept Management Company LLC; Dynasty, Inc., No. 8:23-cv-00765 (May 3, 2023)
summary
Brett M. Bartlett and Scott A. Miller orchestrated a $20.5 million affinity fraud targeting church members through fraudulent securities, resulting in SEC charges and parallel criminal proceedings.
paragraph
The SEC charged Brett M. Bartlett and Scott A. Miller with orchestrating a $20.5 million securities fraud involving promissory notes, stocks, and gold contracts. The defendants allegedly issued $21 million in bad checks and made $11 million in Ponzi-like payments to sustain the scheme. They face charges for violating antifraud and registration provisions, with the SEC seeking injunctions, disgorgement, and civil penalties.
narrative
Brett M. Bartlett and his father-in-law, Scott A. Miller, allegedly orchestrated an affinity fraud that raised at least $20.5 million from over 1,000 investors by leveraging religious ties. Between 2018 and 2020, the pair sold fraudulent promissory notes, stocks, and gold contracts through several companies, including Dynasty Toys Inc. and The 7M eGroup Corp. To manage the scheme, they utilized a Ponzi-like structure involving $11 million in payments and issued $21 million in bad checks. Additionally, the defendants misappropriated over $1.2 million for personal luxuries such as vacations and high-end rentals. The SEC is seeking permanent injunctions, disgorgement, and officer and director bars, while a parallel criminal investigation is being conducted by the U.S. Attorney’s Office.
Classified affinity-fraud(confidence 100%). EDGAR detection: forms Form D· recall 58% / precision 2%. detection rule →
Statutes
Parties
Securities and Exchange CommissionBrett M BartlettConcept Management Company LLCScott A MillerThe 7M EGroup Corp.Dynasty Toys, Inc.Dynasty, Inc.
Keywords
bartlettmillerdynastybrett bartlettdynasty toyssecurities exchangebartlett millersecuritiesincscott milleregroup corpcorp conceptconcept managementmanagement companyexchange commission
Extracted insights
Dollar amounts 5
- $21.00M $21 million $10M–$100M
- $20.50M $20.5 million $10M–$100M
- $20.00M $20 Million $10M–$100M
- $11.00M $11 million $10M–$100M
- $1.20M $1.2 million $1M–$10M
Entities 6
- person brett m. bartlett
- person Gary Leung
- company his christian faith to win investor trust
- person ruth pinkel
- agency Securities and Exchange Commission
- agency u.s. attorney's office for the central district of illinois
Triples 16
- SEC charged Brett M. Bartlett, Scott a. Miller, and their companies
- Brett M. Bartlett and Scott a. Miller raised funds from more than 1,000 investors nationwide
- Brett M. Bartlett invoked his Christian faith to win investor trust
- Brett M. Bartlett attributed his alleged success to divine intervention
- Brett M. Bartlett and Scott a. Miller misled investors
- Brett M. Bartlett and Scott a. Miller made more than $11 million in Ponzi-like payments
- Brett M. Bartlett and Scott a. Miller sent $21 million in bad checks to investors
- Brett M. Bartlett and Scott a. Miller misappropriated more than $1.2 million for personal use
- The complaint charges the defendants with violating antifraud provisions
- The complaint charges the defendants, except 7Me, with violating registration provisions
- SEC seeks permanent injunctions, disgorgement, civil penalties, and officer and director bars
- U.S. Attorney's Office For The Central District Of Illinois announced criminal charges against Brett M. Bartlett, 7Me, and Dynasty Toys
- SEC's Office Of Investor Education And Advocacy and The Division Of Enforcement's Retail Strategy Task Force issued an Investor Alert with tips to avoid affinity fraud
- Ruth Pinkel will lead the litigation
- Gary Leung will supervise the litigation
- SEC appreciates the assistance of the U.S. Attorney's Office For The Central District Of Illinois, FBI Springfield Field Office, and FDIC Office Of Inspector General
Extracted body text (3,181c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25705 / May 3, 2023 Securities and Exchange Commission v. Brett M. Bartlett et al., No. 8:23-cv-00765 (C.D. Cal. filed May 2, 2023) SEC Alleges Son and Father-In-Law Touted Faith to Target Church Members in $20 Million Offering Fraud On May 2, 2023, the Securities and Exchange Commission charged Brett M. Bartlett, his father-in-law Scott A. Miller, and their companies for fraudulent securities offerings that raised at least $20.5 million, some of which Bartlett and Miller misused for personal expenses. According to the SEC's complaint, from at least June 2018 to May 2020, Bartlett and Miller raised funds from more than 1,000 investors nationwide by selling promissory notes, stock, and fraudulent gold contracts through their companies, Dynasty Toys Inc., The 7M eGroup Corp., Concept Management Company LLC, and Dynasty Inc. As the complaint alleges, when soliciting investors, many of them from a large church in central Illinois, Bartlett frequently invoked his Christian faith and attributed his alleged success to divine intervention to win investor trust. The complaint further alleges that, to stave off demand for cash payouts from their unsuccessful business ventures, Bartlett and Miller misled investors, made more than $11 million in Ponzi-like payments, and sent to investors $21 million in bad checks that bounced due to insufficient funds. In addition, Bartlett and Miller misappropriated more than $1.2 million for personal use, including vacations, entertainment, and payments for a luxury rental home. The SEC's complaint, filed in federal court in the Central District of California, charges the defendants with 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. The complaint also charges the defendants, with the exception of 7Me, with violating the registration provisions of Sections 5(a) and (c) of the Securities Act. The SEC seeks permanent injunctions, including conduct-based injunctions, disgorgement with prejudgment interest, civil penalties, and officer and director bars. In a parallel investigation, the U.S. Attorney's Office for the Central District of Illinois announced criminal charges against Bartlett, 7Me, and Dynasty Toys. Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty. The SEC's Office of Investor Education and Advocacy and the Division of Enforcement's Retail Strategy Task Force have issued an Investor Alert with tips on how investors can avoid becoming a victim of an affinity fraud. The SEC's investigation was conducted by Colleen M. Keating and Maria Rodriguez and supervised by Finola H. Manvelian of the SEC's Los Angeles Regional Office. The litigation will be led by Ruth Pinkel and supervised by Gary Leung. The SEC appreciates the assistance of the U.S. Attorney's Office for the Central District of Illinois, the Federal Bureau of Investigation Springfield Field Office, and the Federal Deposit Insurance Corporation Office of Inspector General.
OCR text (3,181c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25705 / May 3, 2023 Securities and Exchange Commission v. Brett M. Bartlett et al., No. 8:23-cv-00765 (C.D. Cal. filed May 2, 2023) SEC Alleges Son and Father-In-Law Touted Faith to Target Church Members in $20 Million Offering Fraud On May 2, 2023, the Securities and Exchange Commission charged Brett M. Bartlett, his father-in-law Scott A. Miller, and their companies for fraudulent securities offerings that raised at least $20.5 million, some of which Bartlett and Miller misused for personal expenses. According to the SEC's complaint, from at least June 2018 to May 2020, Bartlett and Miller raised funds from more than 1,000 investors nationwide by selling promissory notes, stock, and fraudulent gold contracts through their companies, Dynasty Toys Inc., The 7M eGroup Corp., Concept Management Company LLC, and Dynasty Inc. As the complaint alleges, when soliciting investors, many of them from a large church in central Illinois, Bartlett frequently invoked his Christian faith and attributed his alleged success to divine intervention to win investor trust. The complaint further alleges that, to stave off demand for cash payouts from their unsuccessful business ventures, Bartlett and Miller misled investors, made more than $11 million in Ponzi-like payments, and sent to investors $21 million in bad checks that bounced due to insufficient funds. In addition, Bartlett and Miller misappropriated more than $1.2 million for personal use, including vacations, entertainment, and payments for a luxury rental home. The SEC's complaint, filed in federal court in the Central District of California, charges the defendants with 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. The complaint also charges the defendants, with the exception of 7Me, with violating the registration provisions of Sections 5(a) and (c) of the Securities Act. The SEC seeks permanent injunctions, including conduct-based injunctions, disgorgement with prejudgment interest, civil penalties, and officer and director bars. In a parallel investigation, the U.S. Attorney's Office for the Central District of Illinois announced criminal charges against Bartlett, 7Me, and Dynasty Toys. Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty. The SEC's Office of Investor Education and Advocacy and the Division of Enforcement's Retail Strategy Task Force have issued an Investor Alert with tips on how investors can avoid becoming a victim of an affinity fraud. The SEC's investigation was conducted by Colleen M. Keating and Maria Rodriguez and supervised by Finola H. Manvelian of the SEC's Los Angeles Regional Office. The litigation will be led by Ruth Pinkel and supervised by Gary Leung. The SEC appreciates the assistance of the U.S. Attorney's Office for the Central District of Illinois, the Federal Bureau of Investigation Springfield Field Office, and the Federal Deposit Insurance Corporation Office of Inspector General.