Josh S. Verne

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 25744 / June 14, 2023

Securities and Exchange Commission v. Josh S. Verne, 2:23-CV-02259 (E.D. Pa. filed June 13, 2023)

SEC Charges Pennsylvania Man in $30 Million Offering Fraud

The Securities and Exchange Commission filed charges against Josh S. Verne in connection with an approximately $30 million offering fraud that targeted more than 100 investors, many from the Philadelphia area.

The SEC's complaint alleges that Verne defrauded investors, including close friends and family members, by making false claims about, among other things, his prior business successes and personal wealth, his authority to pool investor funds in order to purchase securities, and the purported use of investors' funds. According to the complaint, between at least 2018 and 2020, Verne solicited investments for his online rent-to-own business Ownable, LLC, its affiliate Ownable Capital Partners I, LLC, and three limited liability companies he created for the alleged purpose of pooling investors' funds together to invest in Ownable and two start-up companies unaffiliated with Verne. The complaint alleges that Verne wrongfully used at least $9.3 million of investors' funds for his own benefit, including to pay for private school tuition and an interior designer for a beach house, charter private jets, repay millions of dollars in personal loans, and to make Ponzi-like payments to earlier investors.

The SEC's complaint, filed in the United States District Court for the Eastern District of Pennsylvania, charges Verne with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and seeks permanent injunctive relief, disgorgement of ill-gotten gains, prejudgment interest, and civil penalties.

The SEC's investigation, which is ongoing, was conducted by Jennifer Miller and Jacquelyn King of the Philadelphia Regional Office. It was supervised by Assunta Vivolo, Scott A. Thompson, and Nicholas Grippo. The litigation will be led by Karen M. Klotz and Gregory Bockin.

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