Litigation Release No. 25019 / January 29, 2021
Securities and Exchange Commission v. Revolutionary Concepts, Inc., et al., No. 1:18-cv-01832-RWS (N.D. Ga. filed April 27, 2018)
On January 22, 2021, the United States District Court for the Northern District of Georgia entered final judgment on the SEC's fraud and beneficial ownership reporting claims against Solomon RC Ali (a/k/a Richard M. Carter). Among other measures, the final judgment imposed penalties of $107,500 and barred Ali from acting as an officer or director of a public company for ten years.
The SEC's complaint, filed on April 27, 2018, alleges that Ali, while a Senior Vice President at Revolutionary Concepts, Inc. (REVO), arranged for REVO to enter into several sham transactions in which REVO would purportedly acquire valuable assets from companies that he portrayed in the press releases as independent. Ali then touted the sham transactions in press releases as being highly lucrative for REVO, while claiming that REVO acquired valuable assets from the deals. These claims were false. In reality, Ali had close ties to the other companies, the assets REVO acquired were essentially worthless, and Ali's claims that REVO could earn millions of dollars from the deals were baseless.