Clayton Thomas has received an $844,706 judgment in his SEC fraud case.

Thomas’ June 9th judgment also includes an injunction, permanently prohibiting further violations of the Securities and Exchange Act.

The monetary component of Thomas’ judgment is broken down into $519,000 in disgorgement, $102,477 in prejudgment interest and a $223,229 civil penalty.

The SEC filed suit against Thomas (right) on May 9th, 2023. The regulator alleged Thomas stole $730,000 from an investor back in 2019.

Thomas (right) told the investor the devices cost $50,000 each and the investor could expect ‘a guaranteed minimum monthly payment of $1,100 per device.’

The investor lost substantially all of its original investments as a result of Thomas’s misconduct.

Rather than defend himself, Thomas settled the SEC’s charges.

Shortly after the alleged conduct, Thomas went on to to launch Root Wellness in early 2020.

It remains unclear whether Thomas used money he misappropriated from the investor to fund Root Wellness’ launch. Ditto whether Thomas’ settlement will have an impact on Root Wellness’ ongoing business operations.