SEC v. Garrett W. Moretz, No. LR-26372, Western District of North Carolina (Aug. 12, 2025) — Press Release
raw: Garrett W. Moretz
Garrett W. Moretz, No. 5:24-cv-00171 (Aug. 12, 2025)
Garrett W. Moretz obtained a final judgment for fraudulently misrepresenting high-risk L Bonds as 'guaranteed' to retail investors, resulting in financial penalties and a one-year industry bar.
Garrett W. Moretz, a registered representative and investment adviser, was charged with deceiving retail investors by falsely claiming L Bonds were guaranteed. The SEC obtained a final judgment against him for violating the Securities Act of 1933 and the Securities Exchange Act of 1934. Moretz must pay $4,374.91 in disgorgement, $1,404.68 in prejudgment interest, and a $35,000 civil penalty.
The SEC obtained a final judgment against Garrett W. Moretz for the fraudulent sale of high-risk debt securities known as L Bonds. Moretz deceived retail investors by repeatedly misrepresenting these bonds as 'guaranteed' when they were not. To resolve the charges, Moretz consented to a judgment without admitting or denying the allegations. The final judgment imposes a $35,000 civil penalty, $4,374.91 in disgorgement, and $1,404.68 in prejudgment interest. Additionally, Moretz is permanently enjoined from violating federal securities laws and is barred from acting as a broker, dealer, or investment adviser for one year. The enforcement action was led by the SEC’s Chicago Regional Office.
Extracted insights
- $35K $35,000 $10K–$100K
- $4K $4,374 <$10K
- $1K $1,404 <$10K
- person Eric Phillips
- person final judgment
- person garrett w. moretz
- person jay adams
- person multiple retail investors
- agency Securities and Exchange Commission
- person timothy stockwell
- Securities And Exchange Commission obtained final judgment against Garrett W. Moretz
- Securities And Exchange Commission charged Garrett W. Moretz with fraudulently selling high-risk debt securities known as L Bonds
- Garrett W. Moretz deceived multiple retail investors
- Garrett W. Moretz misrepresented L Bonds to investors as guaranteed
- Garrett W. Moretz consented entry of the final judgment
- Final Judgment orders Garrett W. Moretz to pay $4,374.91 in disgorgement
- Final Judgment orders Garrett W. Moretz to pay $1,404.68 in prejudgment interest
- Final Judgment orders Garrett W. Moretz to pay $35,000 civil penalty
- Final Judgment enjoins Garrett W. Moretz from acting as a broker, dealer, or investment adviser for one year
- Securities And Exchange Commission was led by Timothy Stockwell
- Securities And Exchange Commission was assisted by Jay Adams
- Securities And Exchange Commission was supervised by Eric Phillips
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26372 / August 12, 2025 Securities and Exchange Commission v. Garrett W. Moretz, No. 5:24-cv-00171 (W.D.N.C. July 29, 2024) SEC Obtains Final Judgment Against Broker Charged with Making Fraudulent Misrepresentations Related to Sale of L Bonds On August 8, 2025, the Securities and Exchange Commission obtained a final judgment by consent against Garrett W. Moretz, a registered representative and investment adviser representative who the Commission had charged with fraudulently selling high-risk debt securities known as L Bonds. The SEC’s complaint, filed in the United States District Court for the Western District of North Carolina on July 29, 2024, alleged that Moretz deceived multiple retail investors by making repeated misrepresentations to them regarding high-risk debt securities known as L Bonds. The complaint further alleged that Moretz repeatedly misrepresented L Bonds to investors as “guaranteed” when Moretz knew that the L Bonds he offered and sold to investors were not guaranteed. Moretz consented to entry of the final judgment, without admitting or denying the allegations in the complaint, permanently enjoining him from violating 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 final judgment further orders Moretz to pay $4,374.91 in disgorgement, $1,404.68 in prejudgment interest, and a $35,000 civil penalty. The final judgment also enjoins Moretz from acting as, or associating with, a broker, dealer, or investment adviser for one year. The SEC’s litigation was led by Timothy Stockwell, assisted by Jay Adams, and supervised by Eric Phillips of the SEC’s Chicago Regional Office.
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26372 / August 12, 2025 Securities and Exchange Commission v. Garrett W. Moretz, No. 5:24-cv-00171 (W.D.N.C. July 29, 2024) SEC Obtains Final Judgment Against Broker Charged with Making Fraudulent Misrepresentations Related to Sale of L Bonds On August 8, 2025, the Securities and Exchange Commission obtained a final judgment by consent against Garrett W. Moretz, a registered representative and investment adviser representative who the Commission had charged with fraudulently selling high-risk debt securities known as L Bonds. The SEC’s complaint, filed in the United States District Court for the Western District of North Carolina on July 29, 2024, alleged that Moretz deceived multiple retail investors by making repeated misrepresentations to them regarding high-risk debt securities known as L Bonds. The complaint further alleged that Moretz repeatedly misrepresented L Bonds to investors as “guaranteed” when Moretz knew that the L Bonds he offered and sold to investors were not guaranteed. Moretz consented to entry of the final judgment, without admitting or denying the allegations in the complaint, permanently enjoining him from violating 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 final judgment further orders Moretz to pay $4,374.91 in disgorgement, $1,404.68 in prejudgment interest, and a $35,000 civil penalty. The final judgment also enjoins Moretz from acting as, or associating with, a broker, dealer, or investment adviser for one year. The SEC’s litigation was led by Timothy Stockwell, assisted by Jay Adams, and supervised by Eric Phillips of the SEC’s Chicago Regional Office.