The allegations read: The sec alleges that from 2012 to 2014, a recidivist securities law violator defrauded at least 50 relatively unsophisticated investors out of at least $11 million through the sale of securities of vgtel, inc. ("vgtel"), a shell company he controlled. The recidivist securities law violator sold approximately six million shares of vgtel stock to investors using a fictitious name to hide his criminal past and lying to investors regarding the use of stock sale proceeds. The recidivist securities law violator also bribed werbel and another individual, the managing member of evolution partners, who advised their clients to purchase vgtel stock without disclosing to their clients that they had been bribed. The recidivist securities law violator also engaged in matched trading of vgtel stock with a stockbroker to artificially control the stock's market price.
werbel is liable for having aided and abetted in violations of section 17(a) of the securities act and sections 206(1) and 206(2) of the advisers act. Werbel is also liable for violations of section 10(b) of the exchange act and rule 10b-5 and sections 206(1) and 206(2) of the investment advisers act of 1940.
