The Securities and Exchange Commission recently ordered a temporary suspension of a company attempting to raise capital under Reg A+.
Web Debt Solutions first filed a Form 1-A with the SEC back in July 2016. The Offering Circular associated with the initial filing stated:
Web Debt Solutions, LLC has hundreds of clients worldwide that even having 15,000,000 shares available for purchase would not be enough.
Web Debt Solutions said it was seeking to offer equity to shareholders and the public as an Initial Public Offering at a rate of $49.00/share. Up to 15 million shares were said to be available.
The SEC order temporarily suspending the exemption cited Web Debt’s contradictory and untrue statements including;
“Statements indicating that Web Debt’s founder and CEO, Stephanie Izevbizua (“Ms. Izevbizua”), had fifteen years of experience in the debt collection industry prior to starting Web Debt in 2014, despite the fact that Ms. Izevbizua had not previously been employed in the industry.”
“Statements that Web Debt’s principal office is located at 444 W. Lake St., Suite 305, Chicago, Illinois 60606, despite the fact that the building located at this address is under construction and there are no businesses operating from it.”
The SEC said that Web Debt Solutions had failed to cooperate with the SEC staff.
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