The SEC has filed charges against Frank Igwealor, the CEO of several OTC companies, alleging that he misappropriated $2.2 million and profited illegally from the sale of millions of shares in companies he controlled.
According to the SEC's complaint, Igwealor – who had gained control over multiple OTC companies through custodianship – and his spouse, Patience Ogbozor, arranged a multi-million-dollar personal mortgage for themselves from a subsidiary of GiveMePower, Inc. (OTC Pink: GMPW) in November 2021. At the time, Igwealor was serving as the CEO of GiveMePower, and Ogbozor was a director.
The SEC alleges that he orchestrated a series of deceptive transactions involving GiveMePower and several other companies he controlled, including Kid Castle Educational Corporation (OTC Pink: KDCE), Video River Networks, Inc. (OTC Pink: NIHK), Los Angeles Community Capital, and Alpharidge Capital LLC, to conceal the misappropriation and avoid repaying the mortgage.
The SEC further claims that Igwealor relied on Los Angeles Community Capital and Alpharidge Capital LLC to facilitate the illegal sale of approximately 663 million shares of three other companies he controlled. These sales allegedly exceeded legal limitations for control persons and generated profits of approximately $6 million.
The SEC is seeking permanent injunctions, civil penalties, disgorgement of ill-gotten gains with prejudgment interest, and officer and director bans against both Igwealor and Ogbozor. Additionally, the SEC aims to bar Igwealor from participating in penny stock offerings.
As legal proceedings advance, the fate of the companies involved and the others he controlled remains uncertain. The outcome may have significant ramifications for shareholders and could influence how custodianship is practiced and regulated in the future.
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