The Securities and Exchange Commission today filed an enforcement action against an Atlanta-area resident who allegedly misused more than $1.2 million in investments intended to support national security-related businesses and the development of a high-performance submarine vessel.

The SEC's complaint alleges that Timothy S. Batchelor misspent approximately half of the $2.4 million he raised from a handful of investors through an investment fund called Specter Ventures Fund II. For example, Batchelor allegedly used nearly a quarter-million dollars in investor funds to purchase new vehicles and approximately $225,000 to pay student loans. Batchelor also allegedly transferred thousands of dollars in investor funds to other family members.

According to the SEC's complaint, Batchelor later tried to cover his tracks by belatedly fabricating a document in November 2015 describing the unauthorized expenditures as a "loan" taken in February 2015.

The SEC's complaint also alleges that Batchelor was not registered with the SEC in any capacity at the time he raised funds through Specter. The SEC encourages investors to check the backgrounds of people selling them investments by using the SEC's investor.gov website to quickly identify whether they are registered professionals.

The SEC's complaint, filed in federal court in Atlanta, alleges that Batchelor violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.  The complaint seeks disgorgement plus interest and penalties as well as permanent injunctions against Batchelor.

The SEC's investigation was conducted in the Atlanta Regional Office, and the litigation will be led by Robert Schroeder.