SEC v. ORDER GARRETT W. MORETZ, No. 5:24-cv-00171, Western District of North Carolina (Aug. 12, 2025)

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IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
STATESVILLE DIVISION
CIVIL ACTION NO. 5:24-CV-00171-KDB-DCK
U.S. SECURITIES AND
EXCHANGE COMMISSION,
Plaintiff,
v. ORDER
GARRETT W. MORETZ,
Defendant.
ORDER OF PERMANET INJUNCTION AND OTHER RELIEF AS TO
DEFENDANT GARRETT W. MORETZ
The  Securities  and  Exchange  Commission  having  filed  a  Complaint (Doc.  No.  1) and
Garrett W. Moretz (“Defendant”) having entered a general appearance; consented to the Court’s
jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final
Judgment (the “Order”) without admitting or denying the allegations of the Complaint (except as
to  jurisdiction  and  as  otherwise  provided  herein  in  paragraph  V);  waived  findings  of  fact  and
conclusions of law; and waived any right to appeal from this Order:
I.
IT   IS   HEREBY   ORDERED,   ADJUDGED,   AND   DECREED that   Defendant   is
permanently  restrained  and  enjoined  from  violating,  directly  or  indirectly,  Section  10(b)  of  the
Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5
promulgated  thereunder  [17 C.F.R.  § 240.10b-5],  by using  any  means  or  instrumentality  of

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interstate  commerce,  or  of  the  mails,  or  of  any  facility  of  any  national  securities  exchange,  in
connection with the purchase or sale of any security:
(a)to employ any device, scheme, or artifice to defraud;
(b)to make any untrue statement of a material fact, or to omit to state a material fact
necessary in order to make the statements made, in the light of the circumstances
under which they were made, not misleading; or
(c)to  engage  in  any  act,  practice,  or  course  of  business  which  operates  or  would
operate as a fraud or deceit upon any person
by directly or indirectly (i) creating a false appearance or otherwise deceiving any person, or (ii)
disseminating false or misleading documents, materials, or information or making, either orally or
in  writing,  any  false  or  misleading  statement  in  any  communication  with  any  investor  or
prospective investor, about (A) any investment in or offering of securities; or (B) the prospects for
success of any product or company.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal
Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive
actual  notice  of  this Order by  personal  service  or  otherwise: (a) Defendant’s officers, agents,
servants, employees, and attorneys;  and (b) other persons in active  concert or participation with
Defendant or with anyone described in (a).
II.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933
(the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any
means or instruments of transportation or communication in interstate commerce or by use of the
mails, directly or indirectly:
(a)to employ any device, scheme, or artifice to defraud;

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(b)to obtain money or property by means of any untrue statement of a material fact or
any omission of a material fact necessary in order to make the statements made,
in light of the circumstances under which they were made, not misleading; or
(c)to engage in any transaction, practice, or course of business which operates or
would operate as a fraud or deceit upon the purchaser
by directly or indirectly (i) creating a false appearance or otherwise deceiving any person, or (ii)
disseminating false or misleading documents, materials, or information or making, either orally or
in  writing,  any  false  or  misleading  statement  in  any  communication  with  any  investor  or
prospective investor, about (A) any investment in or offering of securities; or (B) the prospects for
success of any product or company.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal
Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive
actual  notice  of  this Order by  personal  service  or  otherwise: (a) Defendant’s officers, agents,
servants, employees, and attorneys;  and (b) other persons in active  concert or participation with
Defendant or with anyone described in (a).
III.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to
Sections 21(d)(1) and 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(1) and (5)], and Section
20(b) of the Securities Act [15 U.S.C. § 77t(b)] Defendant is restrained and enjoined for 12 months
following the date of entry of this Order, from directly or indirectly acting as or being associated
with any broker, dealer, or investment adviser. This injunction shall not prevent Defendant from
being  a  customer  or  client  of  a  broker,  dealer,  or  investment  adviser. For  purposes  of  this
paragraph:
(a)a person is  associated with a broker or dealer if such person is a partner, officer,
director, or branch manager of such broker or dealer (or occupies a similar status
or performs similar functions), directly or indirectly controls, is controlled by, or is
under common control or in an employee of such broker or dealer; and

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(b)a person is associated with an investment adviser if such person is a partner, officer,
or director of such investment adviser (or performs similar functions), or directly
or  indirectly  controls  or  is  controlled  by  such  investment  adviser,  including  any
employee of such investment adviser.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal
Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive
actual  notice  of  this Order by personal service or otherwise: (a) Defendant’s officers, agents,
servants, employees, and attorneys;  and (b) other persons in active  concert or participation with
Defendant or with anyone described in (a).
IV.
IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant
is liable for disgorgement of $4,374.91, representing net profits gained as a result of the conduct
alleged in the Complaint, together with prejudgment interest thereon in the amount of $1,404.68,
and a civil penalty in the amount of $35,000, pursuant to Section 20(d) of the Securities Act [15
U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]. Defendant shall
satisfy this obligation by paying $40,779.59 to the Securities and Exchange Commission pursuant
to the terms of the payment schedule set forth in paragraph V below after entry of this Order.
Defendant  may  transmit  payment  electronically  to  the  Commission,  which  will  provide
detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly from
a bank account via Pay.gov through the SEC website at:
http://www.sec.gov/about/offices/ofm.htm. Defendant  may  also  pay  by  certified  check,  bank
cashier’s check, or United States postal money order payable to the Securities and Exchange
Commission, which shall be delivered or mailed to:
Enterprise Services Center
Accounts Receivable Branch
6500 South MacArthur Boulevard
Oklahoma City, OK 73169

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 and shall be accompanied by a letter identifying the case title; civil action number; name of this
Court and Garrett W. Moretz as a defendant in this action; and specifying that payment is made
pursuant to this Order.
Defendant  shall  simultaneously  transmit  photocopies  of  evidence  of  payment  and  case
identifying information to the Commission’s counsel in this action. By  making  this  payment,
Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part of
the funds shall be returned to Defendant.
 The Commission may enforce the Court’s judgment for disgorgement and prejudgment
interest by using all collection procedures authorized by law, including, but not limited to, moving
for civil contempt at any time after 30 days following entry of this Order.
The  Commission  may  enforce  the  Court’s Order for  penalties using all  collection
procedures authorized by law, including the Federal Debt Collection Procedures Act, 28 U.S.C. §
3001 et  seq., and  moving  for  civil  contempt  for  the  violation  of  any court  orders  issued  in  this
action. Defendant shall pay post-judgment interest on any amounts due after 30 days of the entry
of this Order pursuant to 28 U.S.C. § 1961. The Commission shall hold the funds, together with
any interest and income earned thereon (collectively, the “Fund”), pending further order of the
Court.
The Commission may propose a plan to distribute the Fund subject to the Court’s approval.
Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund provisions of
Section  308(a)  of  the  Sarbanes-Oxley  Act  of  2002. The  Court  shall  retain  jurisdiction  over  the
administration of any distribution of the Fund and the Fund may only be disbursed pursuant to an
Order of the Court.

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Regardless of whether any such Fair Fund distribution is made, amounts ordered to be paid
as civil penalties pursuant to this Judgment shall be treated as penalties paid to the government for
all  purposes,  including  all  tax  purposes. To  preserve  the  deterrent  effect  of  the  civil  penalty,
Defendant  shall  not,  after  offset  or  reduction  of  any  award  of  compensatory  damages  in  any
Related Investor Action based on Defendant’s payment of disgorgement in this action, argue that
he is entitled to, nor shall he further benefit by, offset or reduction of such compensatory damages
award by the amount of any part of Defendant’s payment of a civil penalty in this action (“Penalty
Offset”). If the Court in any Related Investor Action grants such a Penalty Offset, Defendant shall,
within 30 days after entry of a final order granting the Penalty Offset, notify the Commission’s
counsel in this action and pay the amount of the Penalty Offset to the United States Treasury or to
a Fair Fund, as the Commission directs. Such a payment shall not be deemed an additional civil
penalty  and  shall  not  be  deemed  to  change  the  amount  of  the  civil  penalty  imposed  in  this
Judgment. For purposes of this paragraph, a “Related Investor Action” means a private damages
action brought against Defendant by or on behalf of one or more investors based on substantially
the same facts as alleged in the Complaint in this action.
V.
Defendant  shall  pay  the  total  of  disgorgement,  prejudgment  interest,  and  penalty  due  of
$40,779.59  in  two  installments  to  the  Commission  according  to  the  following  schedule:  (1)
$20,389.80, within 30 days of entry of this Order; and (2) $20,389.79 (plus any  applicable post
judgment interest), within 60 days of entry of this Order. Payments shall be deemed made on the
date  they  are  received  by  the  Commission  and  shall  be  applied  first  to  post-judgment  interest,
which accrues pursuant to 28 U.S.C. § 1961 on any unpaid amounts due after 30 days of the entry

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of Order. Prior to making the final payment set forth herein, Defendant shall contact the staff of
the Commission for the amount due for the final payment.
If  Defendant  fails  to  make  any  payment  by  the  date  agreed  and/or  in  the  amount  agreed
according  to  the  schedule  set  forth  above,  all  outstanding  payments  under  this Order,  including
post-judgment interest, minus any payments made, shall become due and payable immediately at
the discretion of the staff of the Commission without further application to the Court.
VI.
IT  IS  FURTHER  ORDERED,  ADJUDGED,  AND  DECREED that  the  Consent  is
incorporated herein with the same force and effect as if fully set forth herein, and that Defendant
shall comply with all of the undertakings and agreements set forth therein.
VII.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes of
exceptions  to  discharge  set  forth  in  Section  523  of  the  Bankruptcy  Code,  11  U.S.C.  §523,  the
allegations  in  the  complaint  are  true  and  admitted  by  Defendant,  and  further,  any  debt  for
disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under  this
Order or  any  other  judgment,  order,  consent  order,  decree  or  settlement  agreement  entered  in
connection with this proceeding, is a debt for the violation by Defendant of the federal securities
laws or any regulation or order issued under such laws, as set forth in Section 523(a)(19) of the
Bankruptcy Code, 11 U.S.C. §523(a)(19).
VIII.
IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain
jurisdiction of this matter for the purposes of enforcing the terms of this Order.
SO ORDERED ADJUDGED AND DECREED.
Signed: August 8, 2025

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IN THE UNITED STATES DISTRICT COURT 

FOR THE WESTERN DISTRICT OF NORTH CAROLINA 

STATESVILLE DIVISION 

CIVIL ACTION NO. 5:24-CV-00171-KDB-DCK 

U.S. SECURITIES AND 

EXCHANGE COMMISSION, 

Plaintiff, 

v. ORDER 

GARRETT W. MORETZ, 

Defendant. 

ORDER OF PERMANET INJUNCTION AND OTHER RELIEF AS TO 

DEFENDANT GARRETT W. MORETZ 

The Securities and Exchange Commission having filed a Complaint (Doc. No. 1) and 

Garrett W. Moretz (“Defendant”) having entered a general appearance; consented to the Court’s 

jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final 

Judgment (the “Order”) without admitting or denying the allegations of the Complaint (except as 

to jurisdiction and as otherwise provided herein in paragraph V); waived findings of fact and 

conclusions of law; and waived any right to appeal from this Order: 

I. 

IT IS HEREBY ORDERED, ADJUDGED, AND DECREED that Defendant is 

permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the 

Securities Exchange Act of 1934 (the “Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 

promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of 

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interstate commerce, or of the mails, or of any facility of any national securities exchange, in 

connection with the purchase or sale of any security: 

(a) to employ any device, scheme, or artifice to defraud;

(b) to make any untrue statement of a material fact, or to omit to state a material fact

necessary in order to make the statements made, in the light of the circumstances

under which they were made, not misleading; or

(c) to engage in any act, practice, or course of business which operates or would

operate as a fraud or deceit upon any person

by directly or indirectly (i) creating a false appearance or otherwise deceiving any person, or (ii) 

disseminating false or misleading documents, materials, or information or making, either orally or 

in writing, any false or misleading statement in any communication with any investor or 

prospective investor, about (A) any investment in or offering of securities; or (B) the prospects for 

success of any product or company.  

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal 

Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive 

actual notice of this Order by personal service or otherwise: (a) Defendant’s officers, agents, 

servants, employees, and attorneys; and (b) other persons in active concert or participation with 

Defendant or with anyone described in (a). 

II. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 

is permanently restrained and enjoined from violating Section 17(a) of the Securities Act of 1933 

(the “Securities Act”) [15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any 

means or instruments of transportation or communication in interstate commerce or by use of the 

mails, directly or indirectly: 

(a) to employ any device, scheme, or artifice to defraud;

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(b) to obtain money or property by means of any untrue statement of a material fact or

any omission of a material fact necessary in order to make the statements made,

in light of the circumstances under which they were made, not misleading; or

(c) to engage in any transaction, practice, or course of business which operates or

would operate as a fraud or deceit upon the purchaser

by directly or indirectly (i) creating a false appearance or otherwise deceiving any person, or (ii) 

disseminating false or misleading documents, materials, or information or making, either orally or 

in writing, any false or misleading statement in any communication with any investor or 

prospective investor, about (A) any investment in or offering of securities; or (B) the prospects for 

success of any product or company.  

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal 

Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive 

actual notice of this Order by personal service or otherwise: (a) Defendant’s officers, agents, 

servants, employees, and attorneys; and (b) other persons in active concert or participation with 

Defendant or with anyone described in (a). 

III. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that pursuant to 

Sections 21(d)(1) and 21(d)(5) of the Exchange Act [15 U.S.C. § 78u(d)(1) and (5)], and Section 

20(b) of the Securities Act [15 U.S.C. § 77t(b)] Defendant is restrained and enjoined for 12 months 

following the date of entry of this Order, from directly or indirectly acting as or being associated 

with any broker, dealer, or investment adviser. This injunction shall not prevent Defendant from 

being a customer or client of a broker, dealer, or investment adviser. For purposes of this 

paragraph: 

(a) a person is associated with a broker or dealer if such person is a partner, officer,

director, or branch manager of such broker or dealer (or occupies a similar status

or performs similar functions), directly or indirectly controls, is controlled by, or is

under common control or in an employee of such broker or dealer; and

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(b) a person is associated with an investment adviser if such person is a partner, officer,

or director of such investment adviser (or performs similar functions), or directly

or indirectly controls or is controlled by such investment adviser, including any

employee of such investment adviser.

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, as provided in Federal 

Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive 

actual notice of this Order by personal service or otherwise: (a) Defendant’s officers, agents, 

servants, employees, and attorneys; and (b) other persons in active concert or participation with 

Defendant or with anyone described in (a). 

IV. 

IT IS HEREBY FURTHER ORDERED, ADJUDGED, AND DECREED that Defendant 

is liable for disgorgement of $4,374.91, representing net profits gained as a result of the conduct 

alleged in the Complaint, together with prejudgment interest thereon in the amount of $1,404.68, 

and a civil penalty in the amount of $35,000, pursuant to Section 20(d) of the Securities Act [15 

U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]. Defendant shall 

satisfy this obligation by paying $40,779.59 to the Securities and Exchange Commission pursuant 

to the terms of the payment schedule set forth in paragraph V below after entry of this Order. 

Defendant may transmit payment electronically to the Commission, which will provide 

detailed ACH transfer/Fedwire instructions upon request. Payment may also be made directly from 

a bank account via Pay.gov through the SEC website at: 

http://www.sec.gov/about/offices/ofm.htm. Defendant may also pay by certified check, bank 

cashier’s check, or United States postal money order payable to the Securities and Exchange 

Commission, which shall be delivered or mailed to:  

Enterprise Services Center 

Accounts Receivable Branch 

6500 South MacArthur Boulevard 

Oklahoma City, OK 73169 

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5 

 and shall be accompanied by a letter identifying the case title; civil action number; name of this 

Court and Garrett W. Moretz as a defendant in this action; and specifying that payment is made 

pursuant to this Order.  

Defendant shall simultaneously transmit photocopies of evidence of payment and case 

identifying information to the Commission’s counsel in this action. By making this payment, 

Defendant relinquishes all legal and equitable right, title, and interest in such funds and no part of 

the funds shall be returned to Defendant.  

 The Commission may enforce the Court’s judgment for disgorgement and prejudgment 

interest by using all collection procedures authorized by law, including, but not limited to, moving 

for civil contempt at any time after 30 days following entry of this Order.  

The Commission may enforce the Court’s Order for penalties using all collection 

procedures authorized by law, including the Federal Debt Collection Procedures Act, 28 U.S.C. § 

3001 et seq., and moving for civil contempt for the violation of any court orders issued in this 

action. Defendant shall pay post-judgment interest on any amounts due after 30 days of the entry 

of this Order pursuant to 28 U.S.C. § 1961. The Commission shall hold the funds, together with 

any interest and income earned thereon (collectively, the “Fund”), pending further order of the 

Court.  

The Commission may propose a plan to distribute the Fund subject to the Court’s approval. 

Such a plan may provide that the Fund shall be distributed pursuant to the Fair Fund provisions of 

Section 308(a) of the Sarbanes-Oxley Act of 2002. The Court shall retain jurisdiction over the 

administration of any distribution of the Fund and the Fund may only be disbursed pursuant to an 

Order of the Court.  

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Regardless of whether any such Fair Fund distribution is made, amounts ordered to be paid 

as civil penalties pursuant to this Judgment shall be treated as penalties paid to the government for 

all purposes, including all tax purposes. To preserve the deterrent effect of the civil penalty, 

Defendant shall not, after offset or reduction of any award of compensatory damages in any 

Related Investor Action based on Defendant’s payment of disgorgement in this action, argue that 

he is entitled to, nor shall he further benefit by, offset or reduction of such compensatory damages 

award by the amount of any part of Defendant’s payment of a civil penalty in this action (“Penalty 

Offset”). If the Court in any Related Investor Action grants such a Penalty Offset, Defendant shall, 

within 30 days after entry of a final order granting the Penalty Offset, notify the Commission’s 

counsel in this action and pay the amount of the Penalty Offset to the United States Treasury or to 

a Fair Fund, as the Commission directs. Such a payment shall not be deemed an additional civil 

penalty and shall not be deemed to change the amount of the civil penalty imposed in this 

Judgment. For purposes of this paragraph, a “Related Investor Action” means a private damages 

action brought against Defendant by or on behalf of one or more investors based on substantially 

the same facts as alleged in the Complaint in this action. 

V. 

Defendant shall pay the total of disgorgement, prejudgment interest, and penalty due of 

$40,779.59 in two installments to the Commission according to the following schedule: (1) 

$20,389.80, within 30 days of entry of this Order; and (2) $20,389.79 (plus any applicable post 

judgment interest), within 60 days of entry of this Order. Payments shall be deemed made on the 

date they are received by the Commission and shall be applied first to post-judgment interest, 

which accrues pursuant to 28 U.S.C. § 1961 on any unpaid amounts due after 30 days of the entry 

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of Order. Prior to making the final payment set forth herein, Defendant shall contact the staff of 

the Commission for the amount due for the final payment. 

If Defendant fails to make any payment by the date agreed and/or in the amount agreed 

according to the schedule set forth above, all outstanding payments under this Order, including 

post-judgment interest, minus any payments made, shall become due and payable immediately at 

the discretion of the staff of the Commission without further application to the Court. 

VI. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that the Consent is 

incorporated herein with the same force and effect as if fully set forth herein, and that Defendant 

shall comply with all of the undertakings and agreements set forth therein. 

VII. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that, solely for purposes of 

exceptions to discharge set forth in Section 523 of the Bankruptcy Code, 11 U.S.C. §523, the 

allegations in the complaint are true and admitted by Defendant, and further, any debt for 

disgorgement, prejudgment interest, civil penalty or other amounts due by Defendant under this 

Order or any other judgment, order, consent order, decree or settlement agreement entered in 

connection with this proceeding, is a debt for the violation by Defendant of the federal securities 

laws or any regulation or order issued under such laws, as set forth in Section 523(a)(19) of the 

Bankruptcy Code, 11 U.S.C. §523(a)(19). 

VIII. 

IT IS FURTHER ORDERED, ADJUDGED, AND DECREED that this Court shall retain 

jurisdiction of this matter for the purposes of enforcing the terms of this Order. 

SO ORDERED ADJUDGED AND DECREED. 
Signed: August 8, 2025 

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