Monday, June 4, 2007
On June 1, 2007, the SEC filed an emergency action against Harold S. Longs (Longs) and Your Money Worth, Inc. (YMW), alleging that the defendants have raised at least $755,000 and defrauded over 60 investors by promising annual returns of up to 96% in connection with the unregistered offer and sale of YMW securities. In its complaint, the SEC alleges that from at least January 2006 to the present, the defendants solicited investors nationwide by selling memberships into a "private community of invested believers sharing a new trend of higher finance." The complaint further alleges that, after paying a membership fee, investors are allowed to invest in any of at least eight investment programs or "opportunities" that claim to guarantee principal and provide investors with annual returns from 36% to 96% through investments in "high growth investment products on all major markets of the world." In actuality, the complaint alleges, the defendants used investor funds to pay the returns in a classic ponzi scheme. The court granted, among other relief, a temporary restraining order that included an asset freeze. In its enforcement action, the SEC is seeking additional relief, including permanent injunctions, disgorgement, and civil penalties against Longs and YMW.