
In November 2011, the US District Court for the Northern District of Ohio entered final judgments against Steven R. Long and Stanley M. Paulic in an action brought against the men by the Securities and Exchange Commission (SEC).
The SEC’s action alleged that Mr. Long and Mr. Paulic founded Integrity Financial AZ, LLC (IFAZ) and, with the help of others, raised more than $8 million through the fraudulent unregistered offering of promissory notes, which they claimed were secured by real estate in Arizona.
The District Court granted the SEC’s motion for summary judgment in the case and found that both men knowingly made misrepresentations of material facts to investors. Mr. Long was found liable for $1,481,736, plus prejudgment interest in the amount of $97,723.32 and a civil penalty in the amount of $1,465,306. Mr. Paulic was found liable for disgorgement in the amount of $586,225, prejudgment interest in the amount of $38,662.65, and a civil penalty in the amount of $586,225. Additionally, IFAZ was found liable for disgorgement in the amount of $5,598,717, prejudgment interest in the amount of $429,403.44, and a civil penalty in the amount of $650,000.
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