The SEC found that the respondents collectively raised around $487 million from more than 5,000 investors in the United States and elsewhere.
The G Entities and Voice of Guo submitted a settlement offer in anticipation of the Commission’s action to start a proceeding against them.
The respondents agreed to the entry of the SEC Order requiring the respondents to pay more than $539 million.
Saraca and GTV agreed to pay disgorgement of more than $434 million and prejudgment interest of approximately $16 million. They also agreed to pay civil penalties totaling $30 million or $15 million each.
Voice of Guo agreed to pay disgorgement of over $52 million and prejudgment interest of almost $2 million. The company also agreed to pay a civil penalty of $5 million.
Additionally, the SEC Order required the three media companies to stop violating the federal securities laws.
The G Entities and Voice of Guo agreed to the settlement without admitting or denying the SEC charges.
In a statement, SEc Enforcement Divison Deputy Director Sanjay Wadhwa said, “Issuers seeking to access the markets through a public securities offering must provide investors with the disclosures required under the federal securities laws. When they fail to do so, the Commission will seek remedies that make harmed investors whole, such as an unwinding of the offering and a return of the funds to the investors.”