Litigation Releases (Hedonova LLC and Hedonova Advisors LLC)

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26175 / November 21, 2024

Securities and Exchange Commission v. Hedonova LLC and Hedonova Advisors LLC,

Civil Action No. 2:24-cv-05293 (C.D. Cal. filed June 24, 2024)

Court Prohibits Hedonova LLC and Hedonova Advisors LLC from Raising Funds from U.S. Investors

On November 18, 2024, the United States District Court for the Central District of California entered an Order of Preliminary Injunction ("Order") preliminarily enjoining Defendants Hedonova LLC ("Hedonova") and Hedonova Advisors LLC ("Hedonova Advisors") from violations of certain anti-fraud provisions of the federal securities laws: Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, and Hedonova Advisors from violations of Section 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8 thereunder. The parties consented to entry of the stipulated Order. The Order does not preclude Defendants from contesting the allegations or claims in the SEC's complaint.

The Order also:

• Prohibits Hedonova and Hedonova Advisors from soliciting or receiving investments from any investors located in the United States.
• Requires Defendants to post on their website a disclosure that the SEC filed a complaint in federal court alleging Hedonova and Hedonova Advisors violated anti-fraud provisions of the federal securities laws along with links to the SEC's complaint and Defendants' amended answer; and
• Requires Hedonova Advisors to file an amended correct and accurate Form ADV within seven days.

In a complaint previously filed on June 24, 2024, the SEC alleges, among other things, that from at least November 2021 to the present, Hedonova and Hedonova Advisors engaged in a fraudulent scheme by raising money from investors while making numerous false statements about Hedonova's operations and governance. See Litigation Release No. 26041/July 2, 2024.

The litigation of this case is being led by BeLinda Mathie and Lee Farnsworth and assisted by John Birkenheier, all of the SEC's Chicago Regional Office.