H.D. Inc., formerly a New Jersey corporation, and St. Barth, formerly registered in the Commonwealth of the Bahamas, both consented to the judgments, without admitting or denying the allegations of the Commission's complaint. The Court, however, waived the payment of disgorgement and prejudgment interest and did not impose civil penalties based on the defendants' demonstrated financial inability to pay. In its complaint, the Commission alleged that the investment programs were scams, the instruments themselves bogus. Instead of using the money as promised, the promoters of the scheme misappropriated the investors' funds for their own benefit, ultimately transferring most of the money to offshore accounts. Previous judgments were entered against other defendants in this case.
Litigation continues as to the remaining defendants and relief defendants.