Patent Scheme Results in $3m Fine
The SEC has sued the men and two of their companies for a patent scheme that duped dozens of investors. The men, Rockey “Roc” Hatfield and Steve Lovern, fooled investors into paying $3 million for penny stocks and shares of absurd patents that never made it past the application stage.
Hatfield Has History as Recidivist Offender
According to the complaint, the SEC called Hatfield “a prolific recidivist offender” with a history of legal trouble that started in the early 1990’s. Hatfield ran two companies, N1 Technologies Inc. and NanoSave Technologies Inc., that used false press releases and unregistered sales agents to convince investors to buy fractional shares of patents for a variety of nanotechnologies that supposedly would be licensed or sold.
According to the indictment, products included ‘NanoSave N1 Organic,’ a drinkable motor oil, ‘Dynamicon Solar Kinetic Generator,’ an electric generator able to ‘power a small city,’ ‘NanoBolt Lithium Battery,’ a lithium tungsten battery, and ‘Viritron VDX,’ a ‘natural nanobot that could be programmed to deliver a knockout punch to a wide range of bacterial and viral infections.’
Investors Duped into NanoSave Patent Scheme
Investors were given an opportunity to buy 1 percent of a patent for $20,000 with the expectation that a fractional owner would receive a stream of payments from the sale or license of the patent by N1 or NanoSave to companies around the world.
However, the complaint alleges that no patents ever actually were issued by the U.S. Patent and Trademark Office. The SEC alleges that the scheme took in $2.5 million between 2015 and 2017. The Justice Department claims that the number is at least $3 million, dating back to 2012.
To date, Hatfield’s history with the law already includes two federal injunctions, a finding of contempt of court, a ban on working as a broker-dealer or investment adviser and from working with penny stocks, two state securities commission orders, and a criminal conviction.
Have You Lost Money in an Investment Scheme?
If you believe you have been the victim of investment fraud, you may have certain legal rights that require your immediate attention.
Call an Investment Fraud Attorney Today
If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.