SEC v. Garrett W. Moretz — U.S. Securities and Exchange Commission Litigation Release No. 26372, dated August 12, 2025.
The SEC charged broker Garrett W. Moretz with defrauding retail investors by misrepresenting high-risk L Bonds as "guaranteed." Moretz consented to a final judgment, permanently enjoined from violating securities laws. He must pay over $5,700 in disgorgement and interest, a $35,000 penalty, and is barred from the securities industry for one year.
Imagine a salesperson telling you a risky investment is as safe as a piggy bank, but you later find out it's actually like a lottery ticket. That's what happened here. The SEC stepped in and said the salesperson can't sell investments for a year and has to pay back some of the money they made, plus a fine.
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.
SEC Obtains Final Judgment Against Broker Charged with Making Fraudulent Misrepresentations Related to Sale of L Bonds. On August 8, 2025, the Securities and Exchange Commission obtained a final judgment by consent against Garrett W. Moretz, a registered representative and investment adviser representative who the Commission had charged with fraudulently selling high-risk debt securities known as L Bonds. The SEC’s complaint, filed in the United States District Court for the Western District of North Carolina on July 29, 2024, alleged that Moretz deceived multiple retail investors by making repeated misrepresentations to them regarding high-risk debt securities known as L Bonds. The complaint further alleged that Moretz repeatedly misrepresented L Bonds to investors as “guaranteed” when Moretz knew that the L Bonds he offered and sold to investors were not guaranteed. Moretz consented to entry of the final judgment, without admitting or denying the allegations in the complaint, permanently enjoining him from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The final judgment further orders Moretz to pay $4,374.91 in disgorgement, $1,404.68 in prejudgment interest, and a $35,000 civil penalty. The final judgment also enjoins Moretz from acting as, or associating with, a broker, dealer, or investment adviser for one year. The SEC’s litigation was led by Timothy Stockwell, assisted by Jay Adams, and supervised by Eric Phillips of the SEC’s Chicago Regional Office.
Named in this action: Garrett W. Moretz.