SEC Judgement – Kirk Sperry and Company

SEC Obtains Final Judgment Against Kirk Sperry and Sperry and Sons Capital Investments, LLC in Offering Fraud

(STL.News) On December 1, 2021, the U.S. District Court for the Western District of Washington entered final judgment as to monetary relief against Washington resident Kirk Sperry and his company, Sperry and Sons Capital Investments, LLC, whom the SEC previously charged with defrauding investors by making false and misleading statements about a failing real estate investment project.

The final judgment finds Sperry and Sons liable for $125,000 in disgorgement, $34,480 in prejudgment interest, and a $125,000 civil penalty, for a total of $284,480, and Kirk Sperry liable for a $125,000 civil penalty.

The SEC’s complaint, filed on September 9, 2020, alleged that Kirk Sperry and Sperry and Sons defrauded two investors by providing them with misleading statements regarding their investments and that Sperry and Sons used part of the money received from the investors to pay back investors in unrelated Sperry and Sons projects.

Kirk Sperry and Sperry and Sons previously agreed to a bifurcated settlement, entered by the Court on May 5, 2021, [see Litigation Release No. 25090], whereby, without admitting or denying the SEC’s allegations, the defendants consented to the entry of judgments that permanently enjoined them from violating the antifraud provisions of 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 SEC’s litigation was led by Sheila O’Callaghan and Silvana Quintanilla and was supervised by Susan LaMarca of the San Francisco Regional Office.

Securities and Exchange Commission v. Kirk Sperry and Sperry and Sons Capital Investments, LLC, No. 2:20-cv-01337 (W.D. Wash. filed September 9, 2020)

SOURCE: SEC