SEC Charges Venulum with Registration Violations
Two non-U.S. companies — Venulum Ltd. (a British Virgin Islands company) and Venulum Inc. (a Canadian company) — and their owner and chairperson, are facing charges filed by the US Securities and Exchange Commission over registration violations in connection with unregistered offers and sales of promissory notes and interests in fine wines.
According to the SEC’s suit filed in Dallas federal court, beginning in 2002, Venulum made unsolicited calls to American investors, usually dentists, to solicit investments in interests in trading in fine wines to be managed by Venulum.
Venulum’s solicitation was said to highlight its purported expertise in selecting, sourcing, storing and marketing fine wines for the benefit of investors.
Then, starting in 2010, Venulum solicited 94 of its wine investors to purchase high-interest promissory notes. Neither of the offerings was registered with the SEC.
Without admitting or denying the SEC’s allegations, the defendants including Venulum owner and chairperson Giles Cadman (a resident of the United Kingdom) consented to permanent injunctions subject to court approval.
The Texas State Securities Board aided in the probe into the matter.