The SEC charged three-time "recidivist" Steven Muehler with running unregistered broker/dealers, facilitating an unregistered securities offering and defrauding small businesses.
Three companies under Muehler's control, his wife Claudia, and his associate Koorosh Rahimi were also charged.
According to the SEC's complaint filed in a federal court in Los Angeles, Muehler is also accused of violating a cease-and-desist order issued by the SEC in 2016 barring him from associating with any broker/dealer. The SEC has filed a parallel action in the same court to enforce that order.
The SEC claims that Muehler's companies AltaVista Capital Markets LLC, AltaVista Private Client LLC and AltaVista Securities LLC are not registered as broker/dealers but have been providing broker/dealer services to more than 20 small businesses. Muehler and his companies received fees, the right to a percentage of any funds raised from investors and the right to an equity stake in each small business customer.
The SEC also alleges that in offering broker/dealer services, Muehler and his companies made fraudulent claims to potential customers, including that Muehler and his companies had $50 million on hand to invest in their customers' securities, that they had previously helped customers raise millions of dollars and that their proprietary online exchange was registered with the SEC. They also concealed that Muehler is subject to an SEC cease-and-desist order and has been sanctioned by California and Minnesota securities regulators.
The complaint alleges that Claudia and Rahimi helped Muehler carry out the scheme.
The complaint seeks permanent injunctions, as well as disgorgement plus interest and penalties.
