The Securities and Exchange Commission on Monday announced that final judgments were entered involving Inofin executives charged with illegally raising at least $110 million from hundreds of investors.
The SEC said the judgments were enetered on July 23 and 24, 2012, respectively in its civil injunctive action against Kevin Mann Sr., and Michael J. Cuomo, filed in the U.S. District Court of Massachusetts.
The SEC complaint alleged that Inofin and its executives, Cuomo, of Plymouth, Mass., Mann of Marshfield, Mass., and Melissa George of Duxbury, Mass., illegally raised at least $110 million from hundreds of investors in 25 states and the District of Columbia by selling unregistered notes.
The SEC claims that Inofin, along with Cuomo, Mann and George, materially misrepresented how Inofin was using investor money and Inofin's financial performance. The SEC also charged two sales agents -- David Affeldt and Thomas K. Keough -- with allegedly promoting the offering and sale of Inofin's unregistered securities. Keough's wife, Nancy Keough, is named in the complaint as a relief defendant for the purposes of recovering proceeds she received as a result of the violations.
Without admitting or denying the allegations in the complaint, Cuomo and Mann consented to an entry of a permanent injunction involving violations of Securities Exchange Act.
The final judgment orders Cuomo to pay $1.3 million, representing profits he gained, together with prejudgment interest of $440,181, for a total of $1.7 million, plus a civil penalty of $150,000. Mann was ordered to pay $733,944, representing profits he gained, together with prejudgment interest of $170,762 for a total of $904,706, plus a civil penalty of $150,000.
The SEC's action remains pending against Inofin, George, Affeldt and the Keoughs.