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This case was last updated from PACER on 04/25/2021 at 08:51:07 (UTC).

United States Securities and Exchange Commission v. Stewart

Case Summary

On February 24, 2021, the Securities and Exchange Commission (“SEC”), represented by Nicholas P. Heinke, attorney at SEC’s Denver Regional Office, filed a civil enforcement action against Glen A. Stewart (“Stewart” or “Defendant”), seeking injunctive relief, disgorgement and monetary penalties for allegedly acting as an unregistered broker and illegally selling Wiser securities in unregistered transactions to retail investors. This case was filed in U.S. District Court in the District of Colorado with Judge Philip A. Brimmer and Judge Nina Y. Wang presiding.

 

In its complaint, the SEC alleged that “From approximately August 2017 through October 2019 (the “Relevant Period”), Stewart offered and sold convertible debt securities issued by Wiser Investments (a Texas partnership) (the “Wiser Partnership”) and equity securities issued by its successor entity Wiser Investments, Inc. (a Colorado corporation) (the “Wiser Corporation” and, collectively with the Wiser Partnership, “Wiser”), raising at least $558,867 from approximately 39 retail investors. In connection with these sales, Stewart received $45,853.50 in transaction-based compensation. At the time Stewart offered and sold Wiser securities to investors, the offering was not registered with the Commission and was not exempt from registration, and Stewart was not registered as a broker or dealer with the Commission or associated with a registered broker-dealer.”

 

The SEC further alleged that “Stewart, through the two Wiser entities, engaged in a continuous, unbroken effort to raise funds to expand a single, unified line of business—Wiser’s contracts-for-deed business. Stewart’s fundraising efforts on behalf of the Wiser Partnership and the Wiser Corporation through the sale of Wiser Notes and Wiser Stock, respectively, were virtually identical: for both, he used a virtually identical two-page prospectus to describe the investment opportunity to prospective investors; funds raised for both entities were used to purchase residential real estate that was later sold under 30-year contracts-for-deed; Wiser only maintained one set of financial records that appears to have commingled and did not differentiate between contracts sold by the Wiser Partnership and the Wiser Corporation; and the Wiser Corporation’s financial records treated the investor capital from the sale of Wiser Notes issued by the Wiser Partnership and from the sale of Wiser Stock issued by the Wiser Corporation equally after the Wiser Notes were converted to Wiser Stock.”

 

There are two claims for relief laid down by the SEC.The first claim of relief is for offer and sale of unregistered securities-Securities Act § 5(a) & (c) [15 U.S.C. § 77e(a) & (c)] and the second claim of relief is for acting as an unregistered broker- violation of Exchange Act § 15(a) [15 U.S.C. § 78o(a)]. 

 

In its prayer for relief, the SEC has requested the court to pass an order permanently restraining and enjoining the Defendant from violating the laws and rules, disgorgement of all ill-gotten gains he received directly or indirectly, as a result of the alleged violations, with pre-judgment interest thereon and to pay civil money penalties pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d) of the Exchange Act [15 U.S.C. § 78u(d)]. 

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-00550

  • Filing Date:

    02/24/2021

  • Case Status:

    Disposed - Other Disposed

  • Case Type:

    Finance - Security/Commodity/Exchange

  • Court:

    U.S. District Courts

  • Courthouse:

    Colorado District

Judge Details

Presiding Judges

Philip A. Brimmer

Nina Y. Wang

 

Party Details

Plaintiff

United States Securities and Exchange Commission

Defendant

Glen A. Stewart

Attorney/Law Firm Details

Plaintiff Attorney

Nicholas P. Heinke

Attorney at U.S. Securities & Exchange Commission-Denver

1961 Stout Street, Byron G. Rogers Federal Building, Suite 1700

Denver, CO 80294-1961

Defendant Attorney

Jeffrey Robert Thomas

Attorney at Thomas Law LLC

3773 E Cherry Creek North Drive, Suite 717

Denver, CO 80209

 

Court Documents

#9

(#9) FINAL JUDGMENT AS TO DEFENDANT GLEN A. STEWART by Magistrate Judge Nina Y. Wang on 3/4/2021. (bwilk, ) (Entered: 03/04/2021)

#8

(#8) ORDER by Magistrate Judge Nina Y. Wang on 3/4/2021. Unopposed Motion for Entry of Final Judgment as to Defendant Glen A. Stewart #2 is GRANTED; and Final judgment will separately ENTER.(bwilk, ) (Entered: 03/04/2021)

#7

(#7) ORDER OF REFERENCE Upon Consent to Jurisdiction of Magistrate Judge by Chief Judge Philip A. Brimmer on 3/2/2021. Pursuant to #6 Consent, this case is directly reassigned to Magistrate Judge Nina Y. Wang. All future pleadings should be designated as 21-cv-00550-NYW .. (sphil, ) (Entered: 03/02/2021)

#6

(#6) CONSENT to Jurisdiction of Magistrate Judge by Plaintiff United States Securities and Exchange Commission All parties consent.. (Heinke, Nicholas) (Entered: 02/26/2021)

#5

(#5) NOTICE of Entry of Appearance by Jeffrey Robert Thomas on behalf of Glen A. StewartAttorney Jeffrey Robert Thomas added to party Glen A. Stewart(pty:dft) (Thomas, Jeffrey) (Entered: 02/25/2021)

#4

(#4) Magistrate Judge consent form issued pursuant to 28 U.S.C. 636(c). NO SUMMONS ISSUED. (jtorr, ) (Entered: 02/24/2021)

2 #2

Proposed Order (PDF Only) Proposed Judgement

2 #1

Exhibit A - Signed Consent

#2

(#2) Unopposed MOTION for Judgment Against Glen A. Stewart by Plaintiff United States Securities and Exchange Commission. (Attachments: #1 Exhibit A - Signed Consent, #2 Proposed Order (PDF Only) Proposed Judgement)(Heinke, Nicholas) (Entered: 02/24/2021)

1 #1

Civil Cover Sheet

#1

(#1) COMPLAINT against Glen A. Stewart Attorney Nicholas P. Heinke added to party United States Securities and Exchange Commission(pty:pla), filed by United States Securities and Exchange Commission. (Attachments: #1 Civil Cover Sheet)(Heinke, Nicholas) (Entered: 02/24/2021)

 

Docket Entries

  • 03/04/2021
  • View Court Documents
  • Docket(#9) FINAL JUDGMENT AS TO DEFENDANT GLEN A. STEWART by Magistrate Judge Nina Y. Wang on 3/4/2021. (bwilk, ) (Entered: 03/04/2021)

    Read MoreRead Less
  • 03/04/2021
  • View Court Documents
  • Docket(#8) ORDER by Magistrate Judge Nina Y. Wang on 3/4/2021. Unopposed Motion for Entry of Final Judgment as to Defendant Glen A. Stewart #2 is GRANTED; and Final judgment will separately ENTER.(bwilk, ) (Entered: 03/04/2021)

    Read MoreRead Less
  • 03/02/2021
  • View Court Documents
  • Docket(#7) ORDER OF REFERENCE Upon Consent to Jurisdiction of Magistrate Judge by Chief Judge Philip A. Brimmer on 3/2/2021. Pursuant to #6 Consent, this case is directly reassigned to Magistrate Judge Nina Y. Wang. All future pleadings should be designated as 21-cv-00550-NYW .. (sphil, ) (Entered: 03/02/2021)

    Read MoreRead Less
  • 02/26/2021
  • View Court Documents
  • Docket(#6) CONSENT to Jurisdiction of Magistrate Judge by Plaintiff United States Securities and Exchange Commission All parties consent.. (Heinke, Nicholas) (Entered: 02/26/2021)

    Read MoreRead Less
  • 02/25/2021
  • View Court Documents
  • Docket(#5) NOTICE of Entry of Appearance by Jeffrey Robert Thomas on behalf of Glen A. StewartAttorney Jeffrey Robert Thomas added to party Glen A. Stewart(pty:dft) (Thomas, Jeffrey) (Entered: 02/25/2021)

    Read MoreRead Less
  • 02/24/2021
  • View Court Documents
  • Docket(#4) Magistrate Judge consent form issued pursuant to 28 U.S.C. 636(c). NO SUMMONS ISSUED. (jtorr, ) (Entered: 02/24/2021)

    Read MoreRead Less
  • 02/24/2021
  • Docket(#3) Case assigned to Chief Judge Philip A. Brimmer and drawn to Magistrate Judge Nina Y. Wang. Text Only Entry. (jtorr, ) (Entered: 02/24/2021)

    Read MoreRead Less
  • 02/24/2021
  • View Court Documents
  • Docket(#2) Unopposed MOTION for Judgment Against Glen A. Stewart by Plaintiff United States Securities and Exchange Commission. (Attachments: #1 Exhibit A - Signed Consent, #2 Proposed Order (PDF Only) Proposed Judgement)(Heinke, Nicholas) (Entered: 02/24/2021)

    Read MoreRead Less
  • 02/24/2021
  • View Court Documents
  • Docket(#1) COMPLAINT against Glen A. Stewart Attorney Nicholas P. Heinke added to party United States Securities and Exchange Commission(pty:pla), filed by United States Securities and Exchange Commission. (Attachments: #1 Civil Cover Sheet)(Heinke, Nicholas) (Entered: 02/24/2021)

    Read MoreRead Less
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