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A USA Herald Investigation

For roughly twenty years, Milton Charles "Todd" Ault III has been a fixture in the small-cap corner of American capital markets — and a recurring subject of regulator findings, civil lawsuits, FINRA discipline, SEC enforcement, and a steady drumbeat of complaints from retail shareholders who say they have been wiped out by his companies. He has rebranded his flagship public vehicle at least four times. He has filed for personal bankruptcy. He has been suspended by FINRA and sanctioned by the SEC. And he has cultivated an unusually devoted online critic class that follows his every Form 8‑K.

This article walks the public record sequentially, from the earliest documented dispute through the most recent 2025 court filings. Where the source is a regulator or a court, the facts are stated as such. Where the source is an investor forum, an opposing party in litigation, or a social-media account, the language is kept to allegations — claims made, not claims proven. Ault has, throughout, denied wrongdoing in most of these matters and has settled the regulatory cases without admitting or denying findings. He continues to operate publicly traded companies today.

2005–2007: Ault Glazer Bodnar & Co. and the "Old Switcheroo"

The first time Ault's name surfaces in widely available litigation records is in the mid‑2000s, around an investment-banking boutique called Ault Glazer Bodnar & Co. According to a complaint chronicled by Courthouse News Serviceunder the headline "The Old Switcheroo," an investor sank roughly $700,000 in equity and $480,000 in debt into what was pitched as a Los Angeles "privately held financial company, modeled after Goldman Sachs." The plaintiff, Bodnar Capital Management, alleged the company's strategy was then quietly redirected toward an adult-entertainment business — a pivot the investor said it never agreed to and which it argued amounted to fraud.

That dispute foreshadowed an entire arc. Around the same window, Ault's affiliates — operating through entities including Ault Glazer Capital Partners (AGCP) and later Zealous Holdings — extended roughly $2.4 million in loans, between 2005 and 2006, to a public company called Patient Safety Technologies (PSTX). When PSTX defaulted, Ault's side blamed the borrower. PSTX and its principals, the Glazers, blamed Ault. The competing narratives spawned years of litigation in California state court (including the Glazer v. Ault appellate decision later published on Leagle.com) and a separate 2010 lawsuit by Zealous Asset Management against Patient Safety Technologies. Bodnar Capital ultimately obtained a $350,000 judgment, plus interest, against Ault Glazer Capital Partners, Zealous Asset Management, and Ault personally.