Securities and Exchange Commission (SEC) filed a complaint against a trio of media companies, alleging illegal unregistered offering of common stock.
The SEC recently levied charges against New York City-based GTV Media Group Inc. and Saraca Media Group Inc., as well as Phoenix, Arizona-based Voice of Guo Media Inc., regarding illegal unregistered offering of GTV common stock.
The agency also indicated, per authorities, charges were to be issued against GTV and Saraca for conducting an illegal unregistered offering of a digital asset security referred to as either G-Coins or G-Dollars.
According to the SEC, without admitting or denying the SEC’s findings that they violated Section 5 of the Securities Act of 1933, GTV and Saraca reached an agreement on a cease-and-desist order — resulting in paying disgorgement of over $434 million plus prejudgment interest of approximately $16 million on a joint and several basis. Each entity will pay a civil penalty of $15 million, officials noted.
Voice of Guo agreed to a cease-and-desist order resulting in payment of disgorgement of more than $52 million plus prejudgment interest of nearly $2 million while agreeing to pay a civil penalty of $5 million.
“Issuers seeking to access the markets through a public securities offering must provide investors with the disclosures required under the federal securities laws,” Sanjay Wadhwa, deputy Director of the SEC’s Enforcement Division, said. “When they fail to do so, the Commission will seek remedies that make harmed investors whole, such as an unwinding of the offering and a return of the funds to the investors.”
Richard R. Best, director of the SEC’s New York Regional Office, said the remedies ordered by the SEC would provide meaningful relief to investors.