Facts

From May 2016 through November 2017, defendant Steven M. Sexton worked for his company, Sexton Financial Advisory Group, Inc. (SAG) as an external sales agent for Woodbridge Group of Companies, LLC (Woodbridge). Defendant sold $4.6 million of Woodbridge's securities to 63 investors. Plaintiff, the Securities and Exchange Commission filed a complaint against defendant in relation to the sold securities.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendant violated the Securities Act because the securities sold by defendant to various investors were not registered with the SEC. Plaintiff contended that defendants were not registered as broker dealers with the SEC but still acted as brokers by selling the securities.

DEFENDANTS' CONTENTIONS: Defendants denied plaintiff's contentions.

Result

The court ordered that defendant was permanently restrained and enjoined from violating Section 5 of the Securities Act. The court also found that defendant was liable for disgorgement of $244,653.70 in profits including interest of $27,137.70, totaling $271,791.40. Additionally, defendant was ordered to pay civil penalties in the amount of $30,000. After offsetting $251,827 defendant had paid in a separate case, the balance he was required to pay was $49,964.66.