SCRANTON — A Securities and Exchange Commission complaint claims a Bellefonte insurance salesman is guilty of fraud and unjust enrichment.
The SEC filed a complaint June 21 in the U.S. District Court for the Middle District of Pennsylvania against James Hocker, alleging that he violated the Securities Exchange Act by obtaining money or property through false statements.
According to the complaint, the defendant allegedly orchestrated a scheme from 2010 until 2017 to induce investors to invest their funds with the promise that they would receive guaranteed returns of between 10 percent and 30 percent.
However, the SEC said the defendant did not invest any of the funds, but instead allegedly used the investors' money for his personal living expenses and to make payments to other investors. The SEC also claims that Hocker raised $1.27 million from about 25 investors by allegedly offering and selling them securities.
The SEC alleges that Hocker knowingly misstated facts to investors and was engaged in deceptive conduct for profit and to obtain money or property for his own benefit.
The plaintiff requests a trial by jury and is asking the court to permanently prohibit Hocker from violating section 17(a) of Securities Act, to order him to pay back the allegedly ill-gotten gains and to pay civil penalties. It is represented by Paul Kisslinger and Breanne Atzert in Washington.
U.S. District Court for the Middle District of Pennsylvania case number 4:18-cv-01251-MWB