FELON'S BILLIONS CLAIM SHATTERED: ONLY $14,654 IN SALES!

U.S. Securities and Exchange Commission Litigation Release No. 26357, dated July 22, 2025.

The SEC charged Jerry D. Guess and his company, Guess & Co. Corporation, with defrauding investors. They falsely claimed the company had millions in revenue and projected billions, but in reality, it had almost no operations or income. A court entered a default judgment against them, barring them from the securities industry for five years and ordering Guess to pay a $15,000 penalty.

In Plain English

Imagine someone is selling you shares in a lemonade stand. They tell you it's making tons of money and will soon be a giant soda company. But, in reality, they've only sold a few cups of lemonade and have no real business. The SEC stepped in and stopped them from selling more shares. The person in charge also has to pay a fine and can't sell any investments for a while, except for their own personal buying and selling.

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

  1. Falsely Portraying Business Success From at least June 2021 through April 2022, Jerry D. Guess and Guess & Co. Corporation told potential investors that Guess & Co. was a diversified company in energy, health care, technology, and real estate. They claimed it had earned millions in revenue from 2019 to 2021.
  2. Projecting Unrealistic Future Earnings The defendants went further, misleading prospective investors by projecting that Guess & Co. would earn billions in revenue in both 2021 and 2022, painting a picture of immense future growth.
  3. Concealing Lack of Operations However, the reality was starkly different. The amended complaint alleges that during the period of the offering, Guess & Co. had no actual business operations, customers, or revenue.
  4. Minimal Actual Sales The only 'business revenue' Guess & Co. had during this time was from selling 19 computers to electronics re-sale shops for a total of $14,654, a minuscule amount compared to the claimed millions and projected billions.
  5. Soliciting Investments Using these false and misleading statements of material facts, the defendants solicited at least 57 prospective investors in at least 12 states and one foreign country to invest in Guess & Co. stock.

The Enforcement Action

The U.S. District Court for the District of Nebraska entered a final judgment on July 7, 2025, against Jerry D. Guess and Guess & Co. Corporation. The judgment permanently enjoins them from violating Sections 17(a)(1) and 17(a)(3) of the Securities Act of 1933. It also enjoins them for five years from participating in the issuance, purchase, offer, or sale of any security, except for Guess's personal trading. Jerry Guess was ordered to pay a civil penalty of $15,000.