A businessman from Wilton who raised more than $581,000 selling unregistered penny stocks to investors on behalf of a tire recycling company that never got off the ground has agreed to pay more than $770,000 to settle the case, the U.S. Securities and Exchange Commission said Thursday.
The SEC’s complaint, filed in federal court Wednesday against John L. Threshie, Jr., alleges that Threshie spent years selling securities to accredited or so-called “sophisticated” investors without registering with the SEC to do so, as required by federal law.
In emails since 2006, Threshie allegedly raised more than $581,000 from at least 94 investors by selling securities in Tirex, a company for which he is the only full-time employee, and which markets a system for recycling tires.
“In soliciting investments …,” the complaint states, “Threshie did not ask prospective investors for financial information about themselves or take any other steps to determine whether they are accredited or sophisticated investors before accepting their payments. At least two investors are unaccredited.”
At one point, Threshie told investors Brazil was ready to sign a contract for the tire recycling system.
On Nov. 12, 2015, the SEC suspended trading in Tirex securities.
Threshie will pay the sum collected from his investors, plus interest and a civil penalty. He also has agreed not to sell penny stocks or solicit investments in his company without providing investors with a copy of the SEC complaint and settlement.
That settlement is subject to court approval.
