Billions Promised, Millions Stolen! Stock Scheme Fools Tech Giant!

SEC v. Charles J. Cole, Torben M. Welch, Beacon Heart, LLC, et al. — U.S. Securities and Exchange Commission Litigation Release No. 26563, dated June 11, 2026.

The SEC charged Charles J. Cole and his attorney, Torben M. Welch, for orchestrating a fraudulent stock scheme. They allegedly tricked Infinite Reality, Inc. (now Napster Corp.) into issuing over 239 million shares by falsely promising a $3.36 billion investment and claiming Cole controlled $55 billion in assets. Cole then used these shares to secure a $1 million loan he never repaid.

In Plain English

Imagine someone promises to invest a huge amount of money, like billions of dollars, into a company. They even show fake proof of their wealth. The company believes them and gives them millions of company shares. Later, the person uses those shares to get a loan, but they never actually invest the promised money and don't pay back the loan. This is like someone promising to buy your lemonade stand for a million dollars, so you give them half your lemonade, and then they use that lemonade to get a loan from a friend, but never pay you or their friend back.

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. False Investment Promise Charles J. Cole, with his lawyer Torben M. Welch, allegedly told Infinite Reality, Inc. that Cole would invest $3.36 billion into the company. This promise was a key part of their fraudulent scheme.
2. Fabricated Wealth Claims To make the investment promise believable, Cole and Welch falsely claimed that Cole and/or his entity, Avranoc, LLC, controlled at least $55 billion in assets. This massive, untrue claim was designed to impress Infinite Reality.
3. Issuance of Stock Based on these false promises and claims of wealth, Infinite Reality issued over 239 million shares of its stock to Cole and two entities he controlled, Beacon Heart, LLC, and Heart of Humanity, LLC, between late 2024 and early 2025.
4. No Investment Received Despite receiving over 239 million shares, which represented approximately 25% of the company's outstanding stock, Infinite Reality never received any money from Cole's promised $3.36 billion investment.
5. Stock Pledged for Loan After fraudulently obtaining the shares, in May 2025, Cole used nearly 45 million of these shares as collateral to secure a $1 million loan from a third-party lender.
6. Lawyer's Role in Loan Welch actively assisted Cole in obtaining the $1 million loan by drafting the loan agreement, providing forged documents to verify Cole's assets, and making false assurances to the lender.
7. Loan Default Cole has not repaid any portion of the $1 million loan, and it is currently in default. Cole allegedly retained at least $552,800 from this loan.

The Enforcement Action

On June 11, 2026, the SEC filed charges against Charles J. Cole, Torben M. Welch, and three entities controlled by Cole (Beacon Heart, LLC, Heart of Humanity, LLC, and Avranoc, LLC) in the Southern District of New York. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against Cole and Welch. A conduct-based injunction is also sought against Cole. Relief defendants The Indigenous Nations’ Bank, Derek A. Thiess, and Barry R. Taylor are named, with disgorgement sought from them. The U.S. Attorney’s Office for the Southern District of New York announced parallel criminal charges against Cole. The SEC's investigation is ongoing.

Named in this action: Charles J. Cole, Torben M. Welch, Beacon Heart, LLC, Heart of Humanity, LLC, Avranoc, LLC, The Indigenous Nations’ Bank.

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