On August 16, 2016, the Commission instituted and simultaneously settled proceedings against Damon M. Barnes and Cathy S. Barnes (collectively, “Respondents”) arising from their participation as unregistered broker-dealers in the offer and sale of securities by interstate commerce (the “Order”). In the Order, the Commission found that the Respondents acted as unregistered sales agents of JCS Enterprises, Inc. (“JCS”) and T.B.T.I., Inc. (“TBTI”) by having offered and sold JCS’s and TBTI’s investment contracts in JCS’s Virtual Concierge program, and the Respondents earned transaction-based compensation from each sale. The Commission found that the Respondents willfully violated Section 15(a)(1) of the Securities Exchange Act of 1934. The Commission ordered the Respondents, jointly and severally, pay a total of $575,000.00, consisting of disgorgement of $566,500.00 and prejudgment interest of $8,500.00.

The Commission further ordered that the Respondents’ liability to the Commission pursuant to the Order would be offset dollar for dollar by proof of payment of $575,000.00 to the Receiver, James D. Sallah, appointed in the related Commission action, SEC v. JCS Enterprises, Inc., Case No. 14-80468-CV-DMM (S.D. Fla.) for distribution to injured investors in accordance with the terms reached in their pre-suit settlement with the Receiver. See the Commission’s order: Release No. 34-78579.