Fossum and his accomplice also allegedly told clients that they would receive a one-time management fee of $2,990 per investment unit sold and no additional compensation, but the SEC’s complaint said that the pair pocketed $20,000 or more in compensation for each investment
On June 7, the court issued a final consent judgment against Fossum, levying the fines and imposing an injunction that bars him from participating in the purchase, sale, offer or issuance of any security other than for his own personal accounts.
In addition, the SEC barred Fossum from associating with any broker, dealer, advisor or statistical ratings organization and participating in the offer, promotion, issuance or trade of any penny stock.
SEC litigation continues against Fossum’s co-defendant, Alonzo R. Calhoon, but no trial date has been set.