UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-82998, IA Release 4874 / April 5, 2018: The Securities and Exchange Commission considered it appropriate and in the public interest that public administrative proceedings be instituted against Joshua D. Mosshart ("Respondent"). The Division of Enforcement alleges that on March 22, 2018, a final judgment was entered against Respondent, permanently enjoining him from future violations of Sections 5(a) and 5(c) of the Securities Act of 1933 ("Securities Act"), and Section 15(a) of the Exchange Act, in the civil action entitled Securities and Exchange Commission v. Enviro Board Corporation, et al., Civil Action Number 2:16-cv-06427, in the United States District Court for the Central District of California. The Commission's complaint alleged that Enviro Board engaged in a fraudulent and unregistered securities offering. The complaint further alleged that Enviro Board intended to profit from its proprietary mill technology, which recycled agricultural waste fiber into low-cost, environmentally-friendly building materials. According to the Commission's complaint, however, Enviro Board consistently failed to successfully commercialize its technology, and the company raised funds through misleading financial projections and other misrepresentations about the status of its commercialization efforts. The complaint also alleged that beginning in May 2011, Mosshart referred at least 18 individuals to Enviro Board, who purchased nearly $5 million of the company's securities. Although Mosshart was paid commissions on those sales of Enviro Board securities, he was not acting within the scope of his employment with LPL since the firm was unaware and did not approve of his conduct, and was not supervising him for purposes of his sale of Enviro Board securities.

Order

Suspension

associating with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

twelve months

3/29/2021

3/28/2022

participating in an offering of penny stock

twelve months

3/29/2021

3/28/2022

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Litigation Release 23628 / August 26, 2016: The Securities and Exchange Commission charged a California-based company and two executives and their primary sales-man Joshua Mosshart with using baseless financial projections and other misleading statements to defraud investors in a venture to manufacture environmentally-friendly building materials. The SEC alleges that the Corporation and its co-chairmen/CEOs raised approximately $6 million from investors during a two-year period by using documents predicting company earnings ranging from $18 million to $95 million per year. They allegedly lacked any reasonable basis for such estimates amid persistent manufacturing problems plaguing the company since its inception. The company Board claimed its green materials had already been used in residential and commercial construction projects, yet the company has never developed a commercially viable mill to manufacture its products. Among other alleged misrepresentations to investors were claims to have secured $161 million in financing from a "vendor" that turned out to be nothing more than an entity created by one of the executives that lacked the resources to actually make such a loan. Meanwhile, according to the SEC's complaint filed in federal court in Los Angeles, the executives and their primary sales-man Joshua Mosshart have paid themselves approximately $2.6 million in compensation out of investor funds. Mosshart also is named in the SEC's complaint and charged with selling unregistered securities and acting as an unregistered broker. The complaint further charged Mosshart with violating Sections 5(a) and 5(c) of the Securities Act and with violating Section 15(a) of the Exchange Act.

Judgment Rendered

Civil and Administrative Penalty(ies)/Fine(s)

Disgorgement

$293,655.00

Monetary Penalty other than Fines

Injunction

permanently restrained

FINRA

FINRA RULES 2010, 3270, NASD RULE 3040: MOSSHART SOUGHT PERMISSION FROM HIS MEMBER FIRM TO BE A COMPANY'S SALES REPRESENTATIVE INVOLVED IN SELLING MANUFACTURING MACHINES FOR BUILDING PANELS. ALTHOUGH THE FIRM APPROVED THIS OUTSIDE BUSINESS ACTIVITY, IT SPECIFICALLY ADVISED MOSSHART THAT HE WAS NOT TO SOLICIT ANY INDIVIDUALS TO INVEST IN THE COMPANY AND REQUIRED HIM TO INFORM THE FIRM ABOUT ANY MATERIAL CHANGES IN HIS ROLE WITH THE COMPANY. HOWEVER, WHILE ASSOCIATED WITH THE FIRM, MOSSHART REFERRED SEVERAL INVESTORS, SOME OF WHOM WERE THE FIRM'S CUSTOMERS, TO THE COMPANY, WHO, IN TURN, INVESTED NEARLY $5 MILLION IN THE COMPANY. MOSSHART RECEIVED ABOUT $485,000 IN REFERRAL FEES. MOSSHART ALSO SERVED AS THE PRESIDENT OF THE COMPANY. MOSSHART NEVER PROVIDED WRITTEN NOTICE TO THE FIRM THAT HE WAS REFERRING INVESTORS TO THE COMPANY AND RECEIVING FEES FOR THOSE REFERRALS, AND HE FAILED TO RECEIVE WRITTEN APPROVAL FROM THE FIRM TO ENGAGE IN THOSE PRIVATE SECURITIES TRANSACTIONS. MOSSHART ALSO FAILED TO PROVIDE THE FIRM WITH PROMPT AND ACCURATE WRITTEN NOTICE THAT HE WAS SERVING AS THE COMPANY'S PRESIDENT.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

1/7/2014

WITHOUT ADMITTING OR DENYING THE FINDINGS, MOSSHART CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.