Wallach agreed to the entry of a judgment ordering a permanent injunction and an officer-and-director bar. He also agreed to pay civil penalties, disgorgement, and prejudgment interest to be determined by the court at a later date upon motion by the SEC. The proposed judgment is subject to court approval.
In a statement, the SEC San Francisco Regional Office Director Erin Schneider said, “As alleged in our complaint, Wallach engaged in an egregious fraud that deprived many older investors of their hard-earned savings and retirement funds. We will continue to combat fraud targeting our most vulnerable investors.”
The Commission’s Office of Investor Education and Advocacy is encouraging investors to ask questions before investing and to review investor alerts on frauds targeting seniors and Ponzi scheme red flags.
The U.S. Attorney’s Office for the Northern District of California filed criminal charges against Wallach based on the accusations of the SEC that he operated an illegal Ponzi scheme.
