Two Texans and three of their companies have been charged with four other individuals and nine other companies in a scheme to defraud investors that involved FCC applications for cellular spectrum licenses.
Terry W. Johnson of Heath, Texas, and Raymon G. Chadwick Jr. of Grand Prairie, Texas — and their Texas private membership companies Innovative Group PMA, Premier Group PMA and Prosperity Group PMA — were charged as fundraising entities for Janus Spectrum LLC, of Glendale, Arizona.
According to the SEC complaint, Janus marketed itself to potential investors as a service provider that prepares cellular spectrum applications on behalf of third parties. The company offered and sold securities based on the licenses, raising more than $12.4 million from investors from May 2012 to October 2014.
The SEC said that investors were promised lucrative returns based on FCC licenses in the Expansion Band and Guard Band portions of the 800 megahertz (MHz) band. Janus and its fundraising entities allegedly told investors that major wireless carriers required licenses in this spectrum when in fact the value of the licenses was small because the spectrum cannot accommodate cellular systems.
Johnson, Chadwick and the four other individuals based in Arizona are charged with violating antifraud and securities registration provisions of the federal securities laws as well as violating the broker-dealer registration provisions.
The Cogdell Law Firm is a boutique law firm focusing on large, complex business and criminal financial-related litigation, including white collar criminal defense, securities fraud, health care fraud investigation, criminal appeals and state criminal defense. When results matter most, contact Dan Cogdell at (713) 426-2244 or [email protected].
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