SEC Wins Final Judgments Against The Movie Studio and CEO Venters
SEC judgments permanently enjoin The Movie Studio and CEO Gordon Scott Venters; Venters must pay $186,735 over an alleged $1.2 million offering fraud.
Summary
The Southern District of Florida entered final judgments on October 15, 2026, against Florida-based The Movie Studio, Inc. and President and CEO Gordon Scott Venters. SEC Litigation Release No. 26683, published November 3, concerns Civil Action No. 0:21-cv-61686-DPG, filed August 13, 2021. The defendants consented to permanent injunctions against violating Sections 5(a) and 5(c) of the Securities Act of 1933. Venters was also permanently enjoined from violating Sections 17(a)(2) and 17(a)(3) and ordered to pay $69,000 in disgorgement, $17,735 in prejudgment interest, and a $100,000 civil penalty.
The SEC complaint alleged that, from April 2017 through December 2020, the defendants raised at least $1.2 million from more than 70 investors through an unregistered offering. Press releases and marketing materials allegedly misrepresented or omitted facts about film ownership, production operations, purported blockchain use, and claimed Amazon revenue. Many investors were allegedly elderly and unsophisticated, and Venters allegedly diverted some proceeds to purposes unrelated to legitimate business activity.
Positives
- October 15, 2026 final judgments imposed permanent Securities Act injunctions on both The Movie Studio and Gordon Scott Venters.
- Venters must pay $186,735 across disgorgement, prejudgment interest, and a civil penalty.
- Sections 17(a)(2) and 17(a)(3) injunctions permanently restrict Venters from specified fraudulent conduct in securities offerings.
- Both defendants consented to the final judgments, securing the SEC’s requested court-ordered remedies without further litigation described in the release.
Risks & concerns
- The SEC alleged The Movie Studio and Venters raised at least $1.2 million from more than 70 investors in an unregistered offering.
- April 2017 through December 2020 marketing allegedly misstated film ownership, production operations, blockchain use, and Amazon revenue.
- Many participating investors were allegedly unsophisticated and elderly, increasing the seriousness of the claimed misconduct.
- Venters allegedly used some investor funds for purposes unrelated to legitimate business activity.
- Permanent injunctions restrict both defendants under Sections 5(a) and 5(c), with additional antifraud restrictions imposed on Venters.