UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Litigation Release 24087 / March 28, 2018: The Securities and Exchange Commission announced that a default judgment as to liability has been entered against DaRayl D. Davis, a self-styled "Financial Coach" charged in December 2017 with operating an offering and investment advisory fraud. On December 22, 2017, the SEC filed a complaint in U.S. District Court for the Northern District of Illinois, alleging that Davis raised more than $5 million from approximately 30 investors by selling them fictitious financial products described as "corporate bond notes" and "guarantee bonds." Davis hosted seminars marketed as the "Smart Money Academy" and "The Smart Money Millionaire Experience," and used his religious affiliation to gain investors' trust. Investors believed the financial products sold by Davis were legitimate and would preserve and grow their investments. The complaint alleges that the investments were not legitimate and that Davis fabricated documents and made false statements concerning the fictitious financial products. Davis did not invest the money he raised from his clients, but instead used the money to fund a lavish lifestyle, repay prior investors, and further his fraudulent scheme. The SEC's complaint alleges that Davis violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.

Judgment Rendered

Disgorgement

$4,134,796.00

Monetary Penalty other than Fines

Injunction