Historical Bonds From Weimar Republic, Others, at Center of Offering Fraud Case

Some of the Commission’s cases have at their center celebrities, note worthy events and other matters which make the underlying facts of interest aside from those tied to the wrongful conduct. One of the Commission’s most recent cases is like that. It is based Historical Bonds that were issued by the German Weimar Republic, certain German utilities and pre-revolutionary Russia and China. SEC v. Historic Asset Placement Services Global, LLC, Civil Action No. 2:24-cv-10745 (C.D. Ca. Filed Dec. 13, 2024).

Named as defendants in the action are the firm; Christopher W. Abshier; Billy Abshier; Frederic Gladle; Ronald Pendley; Kevin Scannell; Sovereign Debt Solutions, LP and Ocean Park Partners. The case centers on the unregistered offer and sale of notes and interests that are tied to a supposed redemption process for Historical Bonds issued by the German Weimar Republic, certain German utilities and the pre-revolutionary governments of Russia and China. The scheme unfolded over a six year period beginning in 2017.

In part Defendants promoted a fictional redemption process for the Historical Bonds which claimed that investors would receive proceeds of up to $15 million for their bonds with an advance payment of $250,000. The process was a sham. No Historical Bonds were ever redeemed.

In one facet of the scheme Historical Asset Placement Services, its managing member Christopher Abshier, and his father, along with Billy Abshier, the day-to-day manager of Historical Bonds were involved. The firm offered custodial serves in which it would hold and safeguard the bonds. It also offered redemption services which would monetize the bonds. Commissions were supposed to be available. The process was a sham.

In another branch of the scheme Defendants Fred Gladle, Pendley and Scannell referenced the firm’s custodianship of the bonds and repeated false claims about the redemption process to others. A related part of the scheme involved Defendants Pendley and Scannell, through Sovereign Debt Solutions and its general partner, Ocean Park. Offered for sale were unregistered interests in promissory notes and limited partnership interests, the value of which is tied to the Historical Bonds. The notes supposedly paid 10% interest. Representations made about the redemption process were false. The complaint alleges violations of Exchange Act Sections 10(b) and Rule 10b-5, and 15(a) and Securities Act Sections 5(a) and 5(c) along 17(a). See Lit. Rel. No. 26196 (Dec. 17, 2024).