The Arizona Corporation Commission found former securities salesman Robert Steven Swagger of Scottsdale, along with two limited liability companies—TRS Pureflix, LLC and TRS Companies, LLC, committed securities fraud. Robert Swagger, TRS Pureflix, LLC, and TRS Companies are jointly and severally ordered to pay $202,000 in restitution and a $25,000 administrative penalty, while his wife, Terri Lynne Swagger, as a controlling person of TRS Pureflix, LLC, is ordered to pay $10,000 in restitution for the company’s securities fraud violations.
The Commission found Robert Swagger solicited investors through the Young Presidents Organization Christian Fellowship Network by posting the investment pool offering on its discussion board and by emailing members. However, Mr. Swagger failed to tell investors that he spent investor funds on personal expenses instead of investing the money into a streaming company for faith and family-friendly media projects.
Mr. Swagger is awaiting sentencing before the United States District Court for the District of Arizona after pleading guilty to federal wire fraud charges related to his conduct promoting the investment pool offering.
In settling this matter, Robert Swagger admits to the Commission’s findings only for the purposes of this proceeding, while Terri Swagger neither admits nor denies the Commission’s findings. Both respondents agree to the entry of their respective consent orders.
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