Michigan-Based Ponzi Scheme Enjoined; Principal Barred

The SEC found that respondent Wegener, acting as an unregistered broker and investment adviser along with two companies that he formed, owned, and controlled, raised at least $6.5 million from at least twenty investors by falsely representing that he would invest their funds in securities through his companies. Instead, he allegedly used the customers’ money: (1) for personal expenses; (2) to pay business expenses for and make investments on his own behalf in entities in which he held an ownership interest, including (but not limited to) the co-defendants; and (3) to make Ponzi-like payments to other customers who requested a return of all or part of their investment.