SEC Charges Recidivist Securities Law Violator With Another Scam

On November 30, the  Securities and Exchange Commission charged Great American Technologies, Inc. (”Great American”) and Vincent Sette, the company’s Vice President of Sales and Marketing, with violating the antifraud provisions of the securities laws.  The Commission’s complaint alleges that Sette is a recidivist securities law violator.  

According to the SEC, Sette’s real name is Vincent Setteducate.  In 1997 the SEC charged him with participating in a fraudulent prime bank securities scheme, and with diverting investors’ funds for his own use.  In a parallel criminal action, Sette pled guilty to wire fraud in connection with the fraudulent prime bank securities scheme.  On May 5, 1998, the Court sentenced him to five years probation and ordered him to pay $300,000 in restitution.

According to the SEC’s most recent complaint, between approximately May 2002 and February 2007, Great American and Sette sold unregistered common stock valued at more than $2.3 million to over 100 investors. Throughout the offering, Great American and Sette made numerous materially misleading statements about Great American’s product, pending contracts, and the company’s alleged plans to conduct an IPO.   

This case highlights the seeming indestructibility of securities law violators.  As we have covered often on Investor’s Watchblog, there is an entire class of person who makes his or her living by ripping off baby boomers and senior citizens.  None of the things that deter law abiding people from breaking the law (prison, disgrace) even makes a dent in these people.  They will continue to rob until put in prison.  Even then, some scamsters continue to run scams from behind bars.  When they get out, they’ll go right into the next scam.The only way to protect yourself from people like this is to do a thorough preinvestment investigation through an independent, unbiased source. 

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