Court Orders Over $5M in Penalties as SEC Cracks Down on Global Investment Scam
The U.S. District Court for the District of Massachusetts entered final judgment against Norman V. Meier in the U.S. Securities and Exchange Commission’s action alleging that Meier orchestrated a years-long, multimillion-dollar international securities fraud.
Meier wrote of his dream “to become a millionaire no matter what it took” in his 2014 book titled: Create Wealth with Private Equity and Public Companies – A Guide for Entrepreneurs and Investors. In corporate records, according to the SEC’s October 2024 complaint, Meier recorded various life goals, including becoming a millionaire and to having “several homes and real estate all over the world.” In 2020, Meier aimed to create income streams from a “private equity organization” in Europe and to have $100,000 in monthly income from his “private equity business.” Meier also listed a goal to be CEO of a public company.
The SEC’s October 2024 complaint alleged that Meier carried out a securities fraud involving the offer and sale of several stocks to unsuspecting investors in both Europe and the United States from June 2015 to December 2023.
The SEC alleged that Meier engaged teams of cold-callers in Europe who used fake names and solicited investments in companies created by Meier for purposes of defrauding investors, as well as soliciting investments in well-known companies to which Meier and his teams of cold-callers had no real connection.
The SEC further alleged that Meier’s victims – more than 180 European investors and three U.S. investors – wired at least $7.9 million combined funds to bank accounts in the United States that Meier controlled. Rather than investing funds as promised, Meier allegedly misappropriated money for his own use and to pay his overseas sales network to lure additional investors.
The complaint named as relief defendants companies controlled by Meier that allegedly received investor funds, including: Treuhand Inc., Windeco Corporation, Texxon Oil Corp., and International Financial Services Inc.
The court entered judgments by default against Meier, Treuhand, Windeco, Texxon, and International Financial Services. The court enjoined Meier from further violations of the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 thereunder. The court also imposed a conduct-based injunction and an officer and director bar upon Meier.
The judgment against Meier orders him to pay a total of $5,047,515 for disgorgement, prejudgment interest, and civil penalties. The court ordered Treuhand to pay disgorgement of $3,832,048 and prejudgment interest of $423,145, Windeco to pay disgorgement of $174,279 and prejudgment interest of $35,090, Texxon to pay disgorgement of $978,151 and prejudgment interest of $304,573, and International Financial Services to pay disgorgement of $690,328 and prejudgment interest of $334,244.
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