SEC v. Historic Asset Placement Services Global, LLC, Billy Abshier, Christopher W. Abshier, et al. — U.S. Securities and Exchange Commission Litigation Release No. 26196, dated December 17, 2024.
The SEC charged eight defendants with operating a multi-million dollar scam involving the fraudulent offer and resale of historical bonds from the German Weimar Republic and pre-revolutionary China and Russia. The defendants allegedly raised over $3.85 million from at least 85 investors by falsely claiming a process to redeem these bonds, which was a sham.
In Plain English
Imagine someone told you they had a secret way to cash in old, forgotten bonds from long ago for millions of dollars. They promised you could get a big payout, even an advance payment, if you gave them money to 'process' these bonds. But it was all a lie; there was no special process, no advance payment, and no bonds were ever cashed in. The people running this were just taking investors' money.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.
How the Alleged Scheme Worked
- Selling Non-Existent Opportunities Defendants offered and sold historical bonds issued by entities like the German Weimar Republic and pre-revolutionary China and Russia. They also offered unregistered promissory notes and limited partnership interests tied to these bonds, raising $103,500 from eight investors.
- Fabricating a Redemption Process Historic Asset Placement Services Global, LLC (HAPS) and its operators, including Billy and Christopher Abshier, falsely claimed to have a special process for redeeming these historical bonds. They alleged this process involved working with U.S. and foreign governments and major financial firms.
- Promising Unrealistic Returns The defendants, including the Gladles, Pendley, and Scannell, made misleading statements about the value of the historical bonds. They embellished HAPS's claims, promising investors potential redemption proceeds of up to $15 million for their bonds.
- Offering Advance Payments As part of the fraudulent pitch, defendants claimed that investors would receive an advance payment of $250,000 towards their expected redemption proceeds. This was a key lure to entice investors into the scheme.
- The Redemption Process Was a Sham The SEC's complaint alleges that the entire redemption process was a sham. No advance payment of $250,000 was ever made, and no historical bonds were ever redeemed using the HAPS process.
- Operating as Unregistered Dealers Fred Gladle and Ronald Josh Pendley allegedly acted as unregistered dealers by engaging in the business of buying and reselling historical bonds for their own accounts, violating registration provisions.
- Impeding Client Reporting Christopher W. Abshier and HAPS allegedly took steps to impede their clients from reporting the misconduct to the SEC, further attempting to conceal their fraudulent activities.
The Enforcement Action
SEC charges eight defendants in a multi-million dollar scheme involving the fraudulent offer and resale of historical bonds from the German Weimar Republic and pre-revolutionary China and Russia. The defendants allegedly raised over $3.85 million from at least 85 investors by falsely claiming a process to redeem these bonds, which was a sham. The SEC seeks permanent injunctions, officer and director bars, conduct-based injunctions, disgorgement plus prejudgment interest, and civil penalties.
Named in this action: Historic Asset Placement Services Global, LLC, Billy Abshier, Christopher W. Abshier, Frederic (Fred) A. Gladle, Ronald Josh Pendley, Kevin E. Scannell.