SEC v. Enterprises, LLC, Brian V. Prendergast, Worldwide Equity Corporation, Donald R. Smith, and Yuail I. Enwia

SEC Complaint against Enterprises, LLC, Brian V. Prendergast, Worldwide Equity Corporation, Donald R. Smith, and Yuail I. Enwia


This SEC complaint charges the defendants with conducting a fraudulent prime bank offering scheme.

Prendergast allegedly represented to investors that monies invested in Enterprises would be pooled with other investors' funds to create a $2.5 million fund, and that the pooled funds would then be invested in WEC, which is run by Smith and Enwia. The complaint alleges Prendergast told investors that the Enterprises investment was "a once in a lifetime opportunity," and that the funds wired from Enterprises to WEC would be traded in "investment grade securities through international banks."

The Commission further alleges that Prendergast represented to investors that the Enterprises investment will generate "guaranteed" returns of four to 20 percent per month, depending on the amount invested, for a total return of 48 to 240 percent per year from the trades conducted by WEC. Investors in Enterprises were also warned to keep information about the investment "strictly confidential" since WEC's transactions were "sensitive in nature." According to the complaint, as many as 14 other investors have invested in Enterprises and WEC.

The Commission's complaint alleges that the defendants violated Section 17(a) of the Securities Act of 1933; Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder.

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Reference Info:Pleadings | Federal, 10th Circuit, Colorado | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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