BRENTWOOD, TN – Clayton R. Thomas, a resident of Brentwood, Tennessee, is facing serious allegations of defrauding an investor out of $730,000 through his now-defunct company, Personalized Healthcare Solution, LLC. The scheme, which ran from February to June 2019, centered around bogus promissory notes and misrepresented investment opportunities, according to a complaint filed in the U.S. District Court for the Middle District of Tennessee.
Thomas allegedly pitched the investor on a plan to purchase medical devices and lease them to medical offices, promising returns generated from usage fees. However, the Securities and Exchange Commission (SEC) claims this was a carefully constructed lie. The complaint details how Thomas grossly inflated the purchase price of the medical devices and falsely projected the potential returns on investment. This wasn’t a first-time offense, the SEC alleges, as Thomas was aware, based on prior experience with another investor, that the medical devices were likely to generate minimal, if any, return.
The investor, lured by the false promises, handed over $730,000. But instead of being used to purchase and deploy the medical devices as promised, the funds were allegedly misappropriated by Thomas for personal use. The SEC alleges he pocketed the difference between the actual cost of the devices and the inflated amount billed to the investor. The result? The investor lost virtually all of their original investment.
The SEC’s complaint charges both Thomas and Personalized Healthcare Solution with violating Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934, alongside Rule 10b-5. While neither Thomas nor his company has admitted to wrongdoing, they have consented to a court order permanently barring them from future violations of these provisions. The court will determine the amount of disgorgement, prejudgment interest, and civil penalties Thomas will ultimately be required to pay.
The investigation was spearheaded by SEC staff members Justin Delfino, under the supervision of Peter Diskin and Justin Jeffries, all based out of the Atlanta Regional Office. The SEC’s legal team, led by Kristin Murnahan and supervised by Graham Loomis, will handle the litigation. A crucial assist in the case came from the United States Secret Service Nashville Field Office, highlighting the agency’s ongoing efforts to combat financial crimes.
This case serves as a stark reminder of the vulnerability of investors and the lengths to which some individuals will go to enrich themselves at others’ expense. While the legal proceedings are ongoing, the SEC’s actions signal a commitment to holding perpetrators of financial fraud accountable and seeking restitution for victims. The SEC case number is 3:23-cv-00459, filed May 9, 2023, in the Middle District of Tennessee.
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Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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