Robert Tye Cournoyer; Green Equity Group, LLC; RS Group Holdings, LLC

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26000 / May 10, 2024

Securities and Exchange Commission v. Robert Tye Cournoyer, Green Equity Group, LLC, and RS Group Holdings, LLC, No. 24-cv-01304 (D. Colo. filed May 10, 2024)

SEC Charges Recidivist and His Entities for Fraudulent Securities Offerings

The Securities and Exchange Commission today announced litigated fraud charges against Robert Tye Cournoyer and two entities that he controlled for their alleged misappropriation of investor funds and false and misleading statements to investors.

The SEC's complaint, filed in federal district court in Colorado, alleges that between at least January 2019 and February 2022, Cournoyer, through Green Equity Group, LLC and RS Group Holdings, LLC, raised approximately $1,270,000 from investors while representing that their funds would be invested in various CBD-related business ventures. According to the complaint, Cournoyer instead misappropriated at least $755,000 of investor funds for personal expenses, including gambling, rent, and luxury purchases, and also made substantial cash withdrawals of investor funds. The complaint further alleges that the defendants made false and misleading statements to investors with respect to Green Equity's business and Cournoyer's education and industry experience. Cournoyer was previously enjoined from violating certain provisions of the federal securities laws and barred from association with any broker or dealer.

The complaint alleges that the defendants violated the anti-fraud 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 seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against all defendants, as well as a conduct-based injunction and officer-and-director bar against Cournoyer.

The SEC's investigation, which is continuing, was conducted by Yamini Piplani Grema with the assistance of Jodanna Haskins, Kerry Matticks, and Helena Engelhart Bean, and is supervised by Danielle R. Voorhees, Nicholas P. Heinke, and Jason J. Burt, all of the SEC's Denver Regional Office. The SEC's litigation will be conducted by Ms. Haskins and supervised by Gregory A. Kasper, Mr. Heinke, and Mr. Burt.