Fraudster's Stock Scheme Funded Horseback Riding, Luxury Rentals!

SEC v. Andrew Wyles Waters, Helen Q. Waters — U.S. Securities and Exchange Commission Litigation Release No. 26425, dated November 26, 2025.

The SEC charged Andrew Wyles Waters with running a fraudulent stock scheme involving ECom Products Group Corporation (EPGC). Waters allegedly misled over 20 investors into buying EPGC stock, worth approximately $3 million, and used the proceeds for personal expenses. A final judgment ordered Waters to pay over $2.7 million in disgorgement, interest, and penalties, and barred him from future securities offerings.

In Plain English

Imagine someone selling shares in a company they own, like selling lemonade from a stand. This person, Andrew Waters, told people his lemonade stand company was amazing and promised big things. He convinced many people to buy shares, saying he needed the money to make the stand even better. But instead of improving the stand, he used the money to buy fancy things for himself, like expensive horse riding lessons and renting a big house. The court stepped in and said this was wrong, ordering him to pay back the money he took and forbidding him from selling any more company shares.

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. Promoting ECom Products Group Corporation From late 2019 to July 2022, Andrew Wyles Waters, who was EPGC's Director and CEO, allegedly made repeated false and misleading statements to investors about the company's business and a purported Regulation A offering.
2. Selling Restricted Stock Waters fraudulently induced more than 20 investors to purchase restricted common stock in ECom Products Group Corporation (EPGC) directly from him.
3. Exchanging Stock He also fraudulently caused 12 investors to accept EPGC common stock in exchange for stock in another company that Waters owned and controlled.
4. Total Face Value of Sales The EPGC common stock that Waters sold to investors, both in direct sales and through stock exchanges, had a total face value of approximately $3 million.
5. Misrepresenting Use of Funds Waters allegedly made false statements to investors regarding his intended use of the funds he obtained from his sales of the stock.
6. Personal Use of Proceeds According to the complaint, Waters and his wife, relief defendant Helen Q. Waters, used cash proceeds from Waters' fraud for personal expenses.
7. Luxury Expenses These personal expenses included costs associated with horseback riding and long-term luxury home rentals.

The Enforcement Action

On October 16, 2025, the U.S. District Court for the Central District of California entered a final judgment by default against Andrew Wyles Waters. The judgment permanently enjoins Waters from participating in unregistered securities transactions and from violating antifraud provisions. It also imposes a permanent officer-and-director bar and a penny stock bar. Waters was ordered to pay disgorgement of $1,939,426.48, prejudgment interest of $600,149.94, and a civil penalty of $236,451.00. Relief defendant Helen Waters was ordered to pay disgorgement of $6,300.00 and prejudgment interest of $1,322.67. Additionally, Waters and Helen Waters are jointly and severally liable for disgorgement of $446,565.27 and prejudgment interest of $93,754.88.

Named in this action: Andrew Wyles Waters, Helen Q. Waters.

Original SEC litigation release ↗ · Browse all cases