(HedgeCo.Net) The Securities and Exchange Commission has charged a North Texas resident with defrauding more than 50 investors out of more than $17 million dollars.

The SEC’s complaint alleges that Richard Randall and his recently deceased associate engaged in a fraudulent scheme to attract investors with a purported opportunity to invest in Wireless Power, LLC, which, in turn would invest in a revolutionary wireless technology for transmitting electricity, but then diverted most of the investor funds to themselves using shell companies that they controlled. According to the complaint, they raised approximately $17.2 million between March 2015 and July 2016 by selling units in Wireless Power. As alleged, Randall was involved in the development of the offering memorandum provided to investors, which falsely represented, among other things, that investor funds would be used by Wireless Power to acquire equity interests in companies developing the wireless technology and that this technology would generate “significant revenue streams” to investors. The Commission further alleges that Randall himself received or used for his own personal benefit approximately $5.3 million of investor funds.

The SEC’s complaint, filed in the Northern District of Texas, charges Randall with violating the antifraud provisions of Sections 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder. He is also charged with aiding and abetting Wireless Power’s violations of Sections 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The Commission seeks an order permanently enjoining Randall from violating the charged provisions of the federal securities laws and requiring him to pay disgorgement with prejudgment interest and a civil penalty.