SEC v. The Investors Registry, LLC, and Michael J. Southworth, Case No. 2:12-cv-02214-MEA (D. Ariz.). On October 17, 2012, the SEC announced charges against Michael Southworth and The Investors Registry, LLC (“TIR”). Southworth sold memberships in TIR. Southworth profiled various issuers by sending emails and posting information on a website for TIR members. Southworth solicited investments in five issuers, advised TIR members about investing in these issuers, and negotiated with the issuers about the terms of the offering. He also touted the issuers without sufficiently disclosing remuneration he received from them.
Southworth and TIR have settled with the SEC. Without admitting or denying the charges, they consented to permanent injunctions against violations of Section 15(a) of the Exchange Act and an order barring Southworth and TIR from participating in the offering or sale of a penny stock for three years. Southworth also agreed to an injunction against violations of Section 17(b) of the Securities Act, and to pay disgorgement of $217,755 plus prejudgment interest, with the waiver of payment of all but $100,000. Also, there is no civil monetary penalty based on Southworth’s Sworn Statement of Financial Condition.