NIT Enterprises Inc. – Complaint Filed by SEC | Goodman & Nekvasil P.A. May Recover Investor Losses
According to SEC Allegations
The Securities and Exchange Commission today announced that it has filed an emergency action and obtained an asset freeze against the operators of a South Florida-based investment scheme that defrauded over 100 retail investors, many of whom are seniors. Two of the defendants charged were previously barred by the Commission from acting as brokers and offering penny stocks to investors.
According to the SEC’s complaint unsealed today, NIT Enterprises, Inc., NIT’s CEO Gary R. Smith, Jason M. Ganton, and James E. Cleary, Jr., raised $4.9 million from investors while making misrepresentations. The defendants allegedly represented that NIT was raising money to fund the company’s efforts to develop its radiation protection products for medical and military applications, which would generate significant returns. In contrast, the SEC alleges that Smith misappropriated $1.25 million or 25% of total investor proceeds to pay for personal expenses, while NIT and Smith have paid 25% of proceeds as undisclosed commissions. The SEC’s complaint further alleges that the defendants made baseless promises of NIT’s future profitability, imminent initial public offering, and expectations to “double or triple” their investment. Defendants Ganton and Cleary, with Smith’s knowledge, allegedly concealed their disciplinary histories and prior SEC actions and bars, including through Ganton’s use of an alias when soliciting investors.
The SEC’s complaint charges all defendants with violating the anti-fraud and registration provisions of the federal securities laws and also charges the individual defendants for, either directly or indirectly, acting as unregistered broker-dealers and violating past Commission orders. The Honorable Judge Cecilia M. Altonaga of the U.S. District Court for the Southern District of Florida granted the SEC’s request for a temporary restraining order and temporary asset freeze against the defendants, and issued an order directing the defendants to provide a sworn accounting. In addition, the complaint seeks relief including injunctions, civil penalties, and disgorgement.
Investors in NIT Enterprises, Inc. May Recover their Losses with Goodman & Nekvasil, P.A.
If you invested, Goodman & Nekvasil, P.A. may help you. Goodman & Nekvasil, P.A., a Clearwater, Florida, law firm with a national practice representing victimized investors, has recovered more than $180 million dollars on behalf of victimized investors.
All our cases are handled on a purely contingency fee basis by Kalju Nekvasil, Esq., formerly regional counsel with the NASD, now known as FINRA. Kalju Nekvasil, Esq. has practiced in this area of the law for more than 35 years.
There is no charge for an evaluation of your case. Further, we handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee. Unless you recover any money, you pay us nothing, not even the costs and expenses which the firm will advance on your behalf.
If you incurred investment losses and would like your case evaluated by a securities attorney (again, there is no charge for an evaluation and all cases are handled on a purely contingency fee basis), please contact us.
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