U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23745 / February 8, 2017
Securities and Exchange Commission v. Oxford City Football Club, Inc., et al., Civil Action No. 15-CV-62594-KMW (S.D. Fla.)
FINAL JUDGMENTS ENTERED AGAINST THOMAS GUERRIERO AND OXFORD CITY FOOTBALL CLUB
On January 26, 2017, the Honorable Kathleen Williams of the United States District Court for the Southern District of Florida entered consent final judgments against defendants Thomas A. Guerriero and Oxford City Football Club, Inc. ("Oxford City"), and relief defendant GCE Wealth, Inc., in SEC v. Oxford City Football Club, Inc., et al., Civil Action No. 15-CV-62594-KMW (S.D. Fla.), a fraudulent stock offering case that the SEC filed on December 10, 2015. The SEC's complaint alleged that Guerriero, the CEO of Oxford City, used deceptive tactics and a boiler room to raise more than $6.5 million from investors who were misled to believe that Oxford City was a thriving conglomerate of sports teams, academic institutions, and real estate holdings, when in reality the company was losing millions of dollars each year and turning no profits from its two lower-division soccer teams in the U.K.
The final judgment against Guerriero permanently enjoins him from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 ("Securities Act"), Sections 10(b) and 20(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rule 10b-5 thereunder; enjoins him from participating in the issuance, purchase, offer or sale of certain securities; bars him from participating in the offering of any penny stock; bars him from serving as an officer or director of a public company; and orders disgorgement of $2,240,173 plus prejudgment interest of $100,648. The final judgement against relief defendant GCE Wealth, Inc., an entity owned by Guerriero, also orders disgorgement of $2,240,173 plus prejudgment interest of $100,648. These disgorgement amounts are deemed satisfied by a restitution order entered against Guerriero in a parallel criminal case. In the criminal case, Guerriero pled guilty to conspiracy to commit wire and mail fraud and was sentenced to a 12½ year prison term, which he is now serving, and ordered to pay restitution of $6.6 million. United States v. Thomas A. Guerriero, Crim. Information No. 15-60317-CR-BLOOM (S.D. Fla). In related administrative proceedings, Guerriero consented to an SEC order barring him from future association with any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization.
The final judgment against Oxford City enjoins it from violating Sections 5(a), 5(c), and 17(a) of the Securities Act, Sections 10(b) and 20(b) of the Exchange Act, and Rule 10b-5 thereunder; and orders disgorgement of $6,600,000 plus prejudgment interest of $253,358. In related administrative proceedings, Oxford City consented to SEC orders suspending the effectiveness of its registration statements and revoking the registration of its securities.
The SEC thanks the U.S. Attorney's Office for the Southern District of Florida and the Federal Bureau of Investigation for their assistance in this matter.
For further information, see Litigation Release No. (LR 23429).