The Securities & Exchange Commission (SEC) has filed a lawsuit against a California company, alleging that it raised $6 million from investors over several years by lying about the prospects of the company. The complaint charges Enviro Board along with individuals Glenn Camp, William Peiffer, and Joshua Mosshart for soliciting investors despite the fact that the 20+-year-old company has generated little to no revenue since its inception.
Despite not having any customers, the company’s offering materials claimed that the company had installed a viable production line and offered environmentally friendly building panels. The company also claimed it had secured more than $161 million in “vendor financing.”
According to the SEC, Enviro Board “appealed to investors’ desires to benefit the environment by creating the false impression that it was on the cusp of lucrative operations.” Between 2011 and 2014, the company raised $6 million from investors: $3 million came from common stock in the company, $2 million in bonds purportedly secured by the company’s interest in state tax credits, $1 million in unsecured bonds and a further $50,000 in promissory notes.
Camp, Peiffer, and Mosshart paid themselves approximately $2.6 million from investor funds.
Call a Los Angeles Stock Fraud Attorney Today
If you purchased or invested with Enviro Board, you may have certain legal rights that require your immediate attention.
Contact an experienced Los Angeles stock fraud attorney today for a consultation to discuss your rights and options.