(HedgeCo.Net) The Securities and Exchange Commission has charged Craig C. Garrick, Jr. of Alpine, Utah, with defrauding investors by misappropriating their funds. According to the SEC’s complaint, Garrick induced investors to invest at least $450,000 in a company Garrick partially controlled, while concealing from the investors that he planned to and did use investment money for his own benefit and living expenses. The complaint also alleges that Garrick failed to disclose to investors that he was serving a probationary sentence for state felony charges of mortgage fraud. On October 5, 2020, Garrick was convicted of securities fraud in the United States District Court for the District of Utah in connection with the same conduct.
Garrick agreed to settle the SEC’s charges without admitting or denying the allegations in the complaint. Garrick will be permanently enjoined from violating the antifraud provisions of the federal securities laws and from conducting unregistered securities offerings. The settlement is subject to court approval.
The SEC’s complaint, filed in federal court in Salt Lake City, Utah, charges Garrick with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and the registration provisions of Section 5 of the Securities Act.