The Securities and Exchange Commission has barred the owner of a sports drink company from the financial industry for illegally raising nearly $8 million from investors for the sports drink firm, the SEC announced Wednesday.
Randy E. Olshen of Newport Beach, Calif., founder and president of Innovative Health Solutions LLC, sold securities in the sports drink company between 2009 and 2013 to at least 50 investors. He wildly exaggerated the sales of the company and created false reports to entice investors, says the SEC complaint.
Olshen diverted a portion of the $7.9 million from investors for his personal use, the SEC says. He declared personal bankruptcy in 2011.
Olshen previously agreed to plead guilty to criminal fraud charges that were also filed in the case in U.S. District Court in Utah and he agreed to pay restitution of $7.9 to investors, the SEC complaint says. For that reason the SEC is not seeking disgorgement of funds.