The U.S. Securities and Exchange Commission announced that it has secured a final judgment against self-styled financial “expert” and “millionaire maker” author and motivational speaker Loral L. Langemeier and her Nevada-based financial coaching firm Live Out Loud Inc., also known as LOL, for orchestrating an investment scheme involving risky and unregistered oil and gas securities sold primarily to retirees and small business owners.
According to the SEC, from at least 2016 through 2018, Langemeier and LOL operated as unregistered brokers and breached their fiduciary duties as investment advisers. Langemeier reportedly positioned herself as a sophisticated financial expert and mentor and developed a roster of clients who paid substantial fees for her supposedly objective business and financial advice. Langemeier allegedly convinced many of these clients to liquidate relatively conservative investments, transfer their funds to self-directed IRAs, and purchase securities in the unregistered oil and gas securities offerings, which she recommended to clients at investment seminars and in follow-up solicitations.
In exchange, the SEC stated that Langemeier received approximately $407,807 total in sales commissions, which she never disclosed. She also held undisclosed equity interests in certain of the issuers of the securities and reportedly received approximately $279,854 by virtue of her ownership stake in two of the investment vehicles that she recommended to her clients.
The SEC said the LOL website touted Langemeier as “one of only a handful of women in the world today who can claim the title of ‘expert’ when it comes to financial matters and the making of millionaires.” Langemeier authored and made available to clients a number of e-books, including one titled “The Millionaire Maker” that purported to provide advice on tax and debt reduction strategies, credit repair, and other financial topics. She also made frequent motivational speaking appearances at events sponsored by Mary Kay and other marketing organizations focused on small business or franchise owners.
The SEC further stated that Langemeier, through LOL, targeted retail investors through tiered coaching programs, with fees ranging from $399 for a three-month plan to as much as $55,000 total for lifetime access to Langemeier’s “Big Table” and “Head of the Table” offerings.
Langemeier advised at least one client to obtain a credit card to pay her $25,000 “Big Table” fee. Langemeier had an undisclosed agreement with the credit card provider pursuant to which they would earn a fee when LOL clients opened a credit card account.
In its final judgment, the court ordered Langemeier to pay disgorgement of $404,807, prejudgment interest of $121,302.28, and a civil penalty of $50,000, for a total of $576,109.28. The court also permanently enjoined Langemeier and LOL from violations of the charged provisions.
Click here to visit AltsWire directory page.
Read the full article here
