The Securities and Exchange Commission has obtained final judgments against a group of Pasadena, Calif.-based companies at the center of a real estate investment scheme that the agency stopped through an emergency action.
The final judgments, entered on April 10, 2018 by a federal district court in Los Angeles, California, permanently enjoined Velocity Investment Group, Inc.; Bio Profit Series I, LLC; Bio Profit Series II, LLC; Bio Profit Series III, LLC; Bio Profit Series V, LLC; and Rockwell Realty Management, Inc. from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
The court’s entry of these final judgments resolves this litigation in its entirety. The court entered judgments against Yin Nan “Michael” Wang and Wendy Ko, on November 30, 2016, permanently enjoining them from violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The judgments also ordered Wang to pay $81,130,000 in disgorgement plus $6,506,297.38 in interest, and a civil penalty of $1,500,000, and ordered Ko to pay $1,491,000 in disgorgement plus $119,572.19 in interest, and a civil penalty of $150,000. And, on March 9, 2018, the court entered an order approving the court-appointed Receiver’s recommendation that the assets of the Receivership entities be distributed to injured investors.