Ohio Chem Co. Sued By SEC Over $12M In Bogus Debt

Law360, New York (May 18, 2017, 2:30 PM EDT) -- A bankrupt chemical company and its former president were accused by the U.S. Securities and Exchange Commission on Tuesday of defrauding dozens of investors with at least $12 million in phony promissory notes, according to a suit filed in Ohio federal court.

The federal securities law enforcement agency accused Hadsell Chemical Processing LLC and its top official Robert Walton Jr. of issuing unregistered corporate debt and by convincing lenders that it was guaranteed by the company’s wealthy minority owner, whose signature Walton forged. A partial settlement...
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