Brent Willis settles NewAge fraud with SEC for $175,000
Brent Willis has settled a fraud lawsuit brought by the SEC for $175,000.
The SEC filed suit against Willin in 2022, alleging fraud tied to Willis’ role as former CEO of NewAge.
As alleged by the SEC, Willis (right) lied about “product distribution deals” in “investors conferences, earnings calls, media interviews, and in at least 12 press releases.”
In reality, these distribution deals either did not exist or were significantly smaller than claimed in the public statements.
Per a Joint Status Report filed on March 17th;
The Parties are pleased to report meaningful progress toward finalization of their settlement discussions. They hope to be able to report a final resolution, and to submit a consent judgment, in the coming days.
The SEC file a motion for Judgment against Willis on March 25th. The judgement was granted later the same day.
In addition to a $175,000 civil fine, Willis is prohibited from further acts of fraud. Willis is also banned from “acting as an officer or
director of any issuer that has a class of [registered] securities” for five years.
NewAge sold in-house manufactured beverages through Noni by NewAge. NewAge also acquired Ariix before eventually filing for bankruptcy in 2022.
After bankruptcy NewAge was rebooted as Partner.Co. A BehindMLM review of Partner.Co is pending.
Technically, isn’t everyone already prohibited from “further acts of fraud”? Maybe we are all prohibited from the initial acts, but have to be convicted and sentenced in order to be prohibited from “further” acts.
Yeah seems obvious but it’s always in civil fraud judgments and/or cease and desist orders (strictly speaking it’s a granted injunction).
IANAL but I believe if future violations are brought to court, the previous explicit injunction carrys weight when it comes to penalties over a first-time offender.
I have seen orders where a previous injunction has been referenced over the years.