Fraud Scheme Results in Charges

On May 28, 2019, the SEC charged Sean Premock with devising a scheme to defraud investors and obtained money and property by means of false and fraudulent pretenses, representations, and promises. The indictment alleges that Premock raised approximately $1.3 million from his clients by making numerous misrepresentations, including that the clients would earn high rates of return from 9% to 12% annually, that their money would be pooled with other clients’ money in order to be invested in various “low-risk” investments such as annuities and “fixed-income notes” using Premock’s unique trading strategies. Clients were allegedly also told that he would take no commissions but would instead be paid by the financial entities into which his clients’ investments were placed. Instead, the indictment alleges that, unbeknownst to his clients, Premock only invested approximately one half of the client funds and used the remainder for personal expenses and making payments to earlier clients to induce them into believing that their investments were safe and profitable so that he could continue the fraudulent scheme.  Premock was barred.