The Securities and Exchange Commission (SEC) and James P. Moore, a cooperator of Ponzi scammer Renwick Haddow, have submitted a joint status letter at the New York Southern District Court. Moore is currently incarcerated by the Federal Bureau of Prisons.

The Commission has provided Moore with a proposed consent judgment that would resolve the action with regards to Moore. Moore is conferring with his court-appointed appellate counsel in the related criminal action.

Counsel for Moore expects to be able to provide a response to the Commission by early next week, and if Moore executes the consent, the SEC staff will begin the process of seeking approval from the Commission to accept the terms of settlement.

With respect to defendant Universal Voicetech, Inc., (UVI), the defendant is in default and no attorney has appeared on its behalf. If this matter with respect to Moore is resolved via settlement, the Commission intends to file a motion for default judgment against UVI. If this matter does not settle with respect to Moore, the Commission intends to resolve both defendants at a later date post-discovery.

Let’s recall that the SEC has earlier indicated that it intends to seek $1.6 million in disgorgement from the defendants.

Let’s recall that the Commission’s Complaint alleges that Moore and Universal Voicetech, Inc., a company Moore controlled, aided and abetted an offering fraud perpetrated by Renwick Haddow in violation of Section 17(a) of the Securities Act of 1933 (“Securities Act”) [15 U.S.C. § 77q(a)] and Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [15 U.S.C. § 240.10b-5].

The Complaint alleges that Haddow (who has now pled guilty to wire fraud and conspiracy to commit wire fraud in a related criminal matter and reached a partial resolution with the Commission), sold investors interests in a company known as “Bar Works,” which purported to provide co-working spaces in converted restaurants and bars. Haddow and others made material misrepresentations in marketing materials sent to investors about Bar Works while raising over $37 million from investors.

Among other things, Bar Works’ website and offering memoranda touted the experience of its CEO, “Jonathan Black,” and omitted any mention of Haddow, when in fact “Black” was fictitious and Haddow, who actually controlled Bar Works, had been sued for a previous illegal investment scheme by the Financial Conduct Authority in the U.K. Haddow subsequently misappropriated the vast majority of the investors’ funds.

Moore and Voicetech aided and abetted Haddow in his fraudulent scheme by interfacing with and finding sales agents who solicited investments in Bar Works. Moore knew that the marketing materials he and his agents used to solicit investments in Bar Works omitted Haddow’s name and instead listed a fictitious name and background when describing “Black,” the company’s purported CEO.


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