[F]rom at least August 2017 through October 2019, Stewart raised approximately $558,867 through the offer and sale of convertible notes and stock issued by Wiser Investments and its successor entity Wiser Investments, Inc. to approximately 39 investors who he identified through his tax advisory company. In connection with these sales, Stewart allegedly received $45,853.50 in transaction-based compensation. In offering and selling the securities, Stewart allegedly, conducted sales meetings with prospective investors and advised them on the merits of the investment. The complaint alleges that at the time Stewart offered and sold Wiser securities, 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.
In the first order, the SEC awarded a whistleblower over $900,000 in connection with an enforcement action and a related action. The whistleblower provided significant evidence, including a critical declaration, that helped expedite an ongoing investigation and enabled the SEC to shut down an ongoing fraudulent scheme preying on retail investors.In the second order, the SEC awarded a whistleblower over $800,000 for providing important evidence of false and misleading statements made to investors, resulting in the return of millions to harmed investors. The whistleblower provided assistance to the staff by participating in an interview and producing documents.
From August 20, 2015 through June 9, 2016, McDevitt solicited investors to purchase promissory notes in SENSEI, LLC, a software platform company for which McDevitt served as chairman and CEO. McDevitt solicited four investors who purchased promissory notes on August 20, 2015, January 8, 2016, February 26, 2016, and June 9, 2016 for a total amount of $600,000. The investors were not customers of Woodrock. McDevitt signed the promissory notes on behalf of SENSEI, LLC. The promissory notes were securities and, in fact, stated on the document that they were securities.Woodrock prohibited its registered representatives from participating in private securities transactions without providing written notice to the firm. McDevitt did not provide written notice to Woodrock prior to participating in the promissory note securities transactions involving SENSEI. Respondent's failure is aggravated by the fact that he did not disclose he was engaged in private securities transactions on three attestations he provided to Woodrock.