SEC v. Teshuater LLC; Larry Donnell Leonard, II; Shuwana Leonard; and Teshua Business Group, LLC, No. LR-24787, Southern District of Texas (Apr. 3, 2020) — Press Release
raw: Teshuater LLC, Larry Donnell Leonard, II, Shuwana Leonard, and Teshua Business Group, LLC, Defendants
Teshuater LLC, Larry Donnell Leonard, II, Shuwana Leonard, and Teshua Business Group, LLC, Defendants, No. 4:20-cv-01187 (Apr. 3, 2020)
summary
Former pastor Larry Donnell Leonard, II, and his wife Shuwana Leonard are accused of operating an affinity fraud targeting the African-American community, raising nearly $500,000 from over 500 investors.
paragraph
The alleged fraud involved selling bogus stock certificates, a valueless cryptocurrency called TeshuaCoin, and a non-existent bitcoin mining investment, with promises of exorbitant returns. The SEC charges the defendants with violating antifraud and registration provisions, seeking permanent injunctive relief. The defendants allegedly raised nearly $500,000 from over 500 investors through these three fraudulent schemes.
narrative
Former pastor Larry Donnell Leonard, II, and his wife Shuwana Leonard are accused of operating an affinity fraud targeting the African-American community. The alleged fraud involved selling bogus stock certificates, a valueless cryptocurrency called TeshuaCoin, and a non-existent bitcoin mining investment, with promises of exorbitant returns. The defendants allegedly raised nearly $500,000 from over 500 investors through these three fraudulent schemes. The SEC charges the defendants with violating antifraud and registration provisions, seeking permanent injunctive relief. The complaint accuses the defendants of misrepresenting the investments and using the proceeds for their own benefit. The SEC's civil charges aim to hold the defendants accountable for their alleged actions. The case highlights the importance of investor protection and the need for vigilance against affinity fraud schemes.
Classified affinity-fraud(confidence 100%). EDGAR detection: forms Form D· recall 58% / precision 2%. detection rule →
Statutes
Section 17(a) of the Securities ActSection 10(b) of the Securities Exchange ActSections 5 of the Securities ActRule 10b-5
Parties
Securities and Exchange CommissionTeshuater, LLCLarry Donnell Leonard, IITeshua Business Group, LLCShuwana Leonard
Keywords
leonardllclarry donnelldonnell leonardshuwana leonardteshua businessbusiness groupteshuaterlarryleonard shuwanaleonard teshuasecurities exchangesecuritiesdonnellshuwana
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 2
- $20.00M $20 million $10M–$100M
- $500K $500,000 $100K–$1M
Entities 7
- person affinity fraud
- company charges against teshuater llc
- person charges against texas residents
- agency Securities and Exchange Commission
- person shuwana leonard
- company teshua business group, llc
- company teshuater llc
Triples 24
- SEC filed charges against Teshuater LLC, Larry Donnell Leonard, II, Shuwana Leonard, and Teshua Business Group, LLC
- SEC charged former pastor and his wife with operating an affinity fraud targeting African-American community
- SEC filed charges against Teshuater LLC, Larry Donnell Leonard, II, Shuwana Leonard, and Teshua Business Group, LLC
- SEC charged former pastor and his wife with operating an affinity fraud targeting African-American community
- SEC filed charges Teshuater LLC, Larry Donnell Leonard, II, Shuwana Leonard, and Teshua Business Group, LLC
- SEC announced charges against Texas resident former pastor and his wife
- SEC charged Larry Donnell Leonard, II and Shuwana Leonard with operating an affinity fraud
- Larry Donnell Leonard, II operated an affinity fraud targeting African-American community
- Shuwana Leonard operated an affinity fraud targeting African-American community
- Teshuater LLC involved in affinity fraud targeting African-American community
- Teshua Business Group, LLC involved in affinity fraud targeting African-American community
- SEC filed lawsuit Securities and Exchange Commission v. Teshuater LLC, Larry Donnell Leonard, II, Shuwana Leonard, and Teshua Business Group, LLC, Defendants
- SEC targeted affinity fraud in African-American community
- April 2, 2020 filed case No. 4:20-cv-01187 (S.D. Tex.)
- April 3, 2020 released Litigation Release No. 24787
- SEC filed charges against Teshuater LLC, Larry Donnell Leonard, II, Shuwana Leonard, and Teshua Business Group, LLC
- SEC charged former pastor and his wife with operating an affinity fraud targeting African-American community
- SEC charged Larry Donnell Leonard, II, Shuwana Leonard
- SEC filed charges against Teshuater LLC
- Teshuater LLC operated affinity fraud targeting African-American community
- Larry Donnell Leonard, II operated affinity fraud
- Shuwana Leonard operated affinity fraud
- Securities and Exchange Commission announced charges against Texas residents
- Securities and Exchange Commission filed litigation release No. 24787
PDF (from attached: complaint)
Text layers
Extracted body text (2,368c)
SEC Charges Former Pastor and His Wife with Operating an Affinity Fraud Targeting African-American Community Litigation Release No. 24787 /April 3, 2020 Securities and Exchange Commission v. Teshuater LLC, Larry Donnell Leonard, II, Shuwana Leonard, and Teshua Business Group, LLC, Defendants, No. 4:20-cv-01187 (S.D. Tex., filed April 2, 2020) The Securities and Exchange Commission announced today that it filed charges against Texas resident and former pastor Larry Donnell Leonard, II, his wife Shuwana Leonard, and two related entities for defrauding hundreds of retail investors. The SEC's complaint alleges that the Leonards and two companies they control, Teshuater, LLC and Teshua Business Group, LLC, targeted investors in the African-American community with three separate fraudulent offerings, raising nearly $500,000 from over 500 investors across the United States. According to the complaint, the Leonards first sold bogus stock certificates in Teshuater, a company that bottled and sold alkaline water. Larry Leonard then allegedly tried to raise $20 million by selling a valueless cryptocurrency called TeshuaCoin, which he falsely claimed was backed by Teshuater's water products. Finally, the complaint alleges that Larry Leonard raised funds for a non-existent bitcoin mining investment, promising exorbitant returns, and then used the funds to make speculative options trades. The SEC's complaint, filed in the United States District Court for the Southern District of Texas, 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 Leonards and Teshuater with violating the registration provisions of Sections 5 of the Securities Act. The complaint seeks permanent and conduct-based injunctions, disgorgement of allegedly ill-gotten gains with prejudgment interest, and civil penalties. The SEC's investigation was conducted by Jason A. Braun and Carol Hahn, and supervised by Jim Etri and Eric R. Werner. The litigation is being led by Jason Reinsch and supervised by B. David Fraser. The SEC's Office of Investor Education and Advocacy has issued an Investor Bulletin on initial coin offerings and additional information is available on Investor.gov and SEC.gov. SEC Complaint
OCR text (2,368c · html-text · 99% conf)
SEC Charges Former Pastor and His Wife with Operating an Affinity Fraud Targeting African-American Community Litigation Release No. 24787 /April 3, 2020 Securities and Exchange Commission v. Teshuater LLC, Larry Donnell Leonard, II, Shuwana Leonard, and Teshua Business Group, LLC, Defendants, No. 4:20-cv-01187 (S.D. Tex., filed April 2, 2020) The Securities and Exchange Commission announced today that it filed charges against Texas resident and former pastor Larry Donnell Leonard, II, his wife Shuwana Leonard, and two related entities for defrauding hundreds of retail investors. The SEC's complaint alleges that the Leonards and two companies they control, Teshuater, LLC and Teshua Business Group, LLC, targeted investors in the African-American community with three separate fraudulent offerings, raising nearly $500,000 from over 500 investors across the United States. According to the complaint, the Leonards first sold bogus stock certificates in Teshuater, a company that bottled and sold alkaline water. Larry Leonard then allegedly tried to raise $20 million by selling a valueless cryptocurrency called TeshuaCoin, which he falsely claimed was backed by Teshuater's water products. Finally, the complaint alleges that Larry Leonard raised funds for a non-existent bitcoin mining investment, promising exorbitant returns, and then used the funds to make speculative options trades. The SEC's complaint, filed in the United States District Court for the Southern District of Texas, 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 Leonards and Teshuater with violating the registration provisions of Sections 5 of the Securities Act. The complaint seeks permanent and conduct-based injunctions, disgorgement of allegedly ill-gotten gains with prejudgment interest, and civil penalties. The SEC's investigation was conducted by Jason A. Braun and Carol Hahn, and supervised by Jim Etri and Eric R. Werner. The litigation is being led by Jason Reinsch and supervised by B. David Fraser. The SEC's Office of Investor Education and Advocacy has issued an Investor Bulletin on initial coin offerings and additional information is available on Investor.gov and SEC.gov. SEC Complaint