SEC Obtains Final Judgment Against Gregory Webb, a Chicago Tech Executive
The SEC has obtained a final judgment against Gregory Webb, the former Chairman and CEO of a company purportedly in the homeland security business.
In October 2011, the SEC charged Gregory E. Webb, the Chairman and CEO of InfrAegis, Inc., and InfrAegis, with conducting a fraudulent, unregistered offering that raised over $20 million from at least 395 investors nationwide. According to the SEC’s complaint, Gregory Webb and InfrAegis made false and misleading claims about the company’s commercial success and the existence of contracts for the installation of InfrAegis’ products.
On February 28, 2014, a federal grand jury in Chicago returned an 11-count indictment against Gregory Webb for substantially similar conduct as alleged in the SEC’s complaint. On July 11, 2016, a jury found Gregory Webb guilty on nine of the eleven counts and, on March 1, 2017, the court sentenced him to nine years’ imprisonment and ordered Gregory Webb to pay $9 million in restitution.
The final judgment in the SEC case, entered by consent on December 11, 2018 by the U.S. District Court for the Northern District of Illinois, enjoins Gregory Webb from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and orders Gregory Webb to pay disgorgement of $550,057 with prejudgment interest of $132,352, but deems payment of these amounts satisfied by a $9 million restitution order against him in the related criminal action.
The SEC’s litigation against InfrAegis continues. The SEC is seeking injunctions and disgorgement plus interest against InfrAegis.
This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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