Deceptive boiler room tactics lead to trade suspension, resignation of CEO
The SEC suspended trading for the Oxford City Football Club amid allegations of fraud and conspiracy to commit fraud by their CEO, Thomas Guerriero. The SEC contends that Guerriero used pressure tactics and led thousands of inexperienced investors to put money into the Oxford City Football Club, under the false impression that the company they were investing in was a robust, diverse group of successful and popular sports teams, real estate holdings and academic institutions. The investment strategies employed were deceptive and significantly misrepresented the company’s assets.
Some of the deceptive tactics used by Mr. Guerriero included developing a script that was communicated to Investors by consultants who were charged with selling Oxford City Football Club Stock. The investors were told that shares could be purchased at a significantly reduced rate, but they were not told that the share price was inflated or that Guerriero was operating a boiler room.
In addition, investors were not told that because the shares were unregistered or that there would be a holding period before the securities could be resold. Investors were told many details about valuable real estate property, a possible listing on the New York Stock Exchange, and a lucrative payoff. Each of these claims were false. In a period of 18 months, it is estimated that more than 150 investors purchased shares of the inflated stock, for a total of $6.6 million. Guerriero operated the company as a boiler room using an army of cold callers to sell penny stocks to unsophisticated investors.
The SEC announced the trade suspension on 12/11/15 and since these serious allegations, Mr. Guerriero has resigned from the Oxford Football Club. Mr. Guerriero worked at multiple FINRA brokerage firms and was terminated from three broker dealers.
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