SEC Sues ECom Products CEO for Private Stock Sales Fraud

An e-commerce company’s CEO defrauded more than 20 investors through private stock sales, using more than $1 million of the investment money on personal expenditures, a Securities and Exchange Commission suit says.

Andrew Waters and his wife Helen Waters allegedly allocated most of that money to purchase cars, pay rent on luxury homes in Colorado and California, and buy horses.

Investors were misled to believe that they were buying stock in ECom Products Group Corporation at a discounted rate, which Andrew Waters told them they could sell for much more after an “imminent” Regulation A securities offering, according to the ...