SEC v. David P. Ortiz and DaveGlo Investment Group, Inc. — U.S. Securities and Exchange Commission Litigation Release No. 26549, dated May 5, 2026.
The SEC charged David P. Ortiz and his company, DaveGlo Investment Group, Inc., for selling unregistered oil and gas securities and acting as unregistered brokers. Ortiz also failed to disclose financial conflicts to his clients. The case involved approximately $18 million in investments from about 20 retail investors.
In Plain English
Imagine someone selling shares in a new oil company, like selling tickets to a special event. This person, David Ortiz, and his company, DaveGlo, sold these "tickets" (investments) without getting the proper permission from the government, which is like selling tickets without a license. He also didn't tell his clients about potential problems with his own finances that could affect their investments. The court has now ordered them to pay back the money they made and a penalty.
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
- Targeting Investors David P. Ortiz, operating through his entity DaveGlo Investment Group, Inc., marketed and sold investments in oil and gas securities. He targeted approximately 20 retail investors for these offerings.
- Mass Marketing Efforts Ortiz utilized mass marketing techniques to reach potential investors. This included advertising on radio programs and hosting investment workshops to solicit participation in the offerings.
- Selling Unregistered Securities The core of the SEC's complaint alleged that Ortiz and DaveGlo sold securities in unregistered oil and gas offerings. This means the securities were not registered with the SEC as required by law.
- Acting as Unregistered Brokers In addition to selling unregistered securities, Ortiz and DaveGlo acted as brokers in these transactions. They did so without being registered with the SEC, violating Section 15(a) of the Securities Exchange Act of 1934.
- Failing to Disclose Conflicts As an investment adviser, Ortiz was also charged with failing to disclose financial conflicts of interest to his advisory clients. This is a violation of Section 206(2) of the Investment Advisers Act of 1940.
- Receiving Transaction-Based Compensation Ortiz received more than $800,000 in transaction-based compensation for selling these unregistered securities, indicating a direct financial incentive tied to the sales.
- SEC Files Complaint The Securities and Exchange Commission (SEC) filed a complaint on September 11, 2025, detailing these allegations against Ortiz and DaveGlo Investment Group, Inc.
- Consent to Initial Judgments On December 19, 2025, Ortiz and DaveGlo consented to judgments without admitting or denying the allegations. These judgments permanently enjoined them from violating securities laws related to unregistered offerings and brokerage activities.
- Final Judgments Entered On April 27, 2026, the court entered final judgments against Ortiz and DaveGlo. These judgments finalized the penalties and injunctions against them.
The Enforcement Action
On April 27, 2026, the U.S. District Court for the Central District of California entered final judgments against David P. Ortiz and his entity DaveGlo Investment Group, Inc. The SEC had charged them with selling unregistered securities in oil and gas offerings, acting as unregistered brokers, and Ortiz with failing to disclose financial conflicts of interest. Ortiz and DaveGlo were permanently enjoined from violating securities laws. The final judgments ordered them jointly and severally to pay disgorgement of $816,934 plus $170,194 in prejudgment interest, and Ortiz was ordered to pay a $50,000 civil penalty, totaling $1,037,128.
Named in this action: David P. Ortiz and DaveGlo Investment Group, Inc..