SEC Charges Legendary Partners, LLC and its President with Reality TV Offering Fraud Targeting Mostly Elderly Investors

The Securities and Exchange Commission (SEC) has taken action against Legendary Partners, LLC, a California-based company, and its founder, Scott L. Snyder, for orchestrating a fraudulent nationwide offering that ran from April 2018 to December 2021, raising approximately $391,000.

The scheme involved promoting an investment opportunity in a startup that claimed it would produce a reality-television series focused on refurbishing damaged exotic and luxury vehicles. To attract investors, Legendary Partners and Snyder utilized “cold callers” based in Orange County, California, who often concealed Snyder’s true identity by using the alias “Bill Miller.” These cold callers, who targeted mostly elderly investors, provided false and misleading profit projections to entice them.

Snyder went even further by intentionally diverting funds from other investors who intended to invest in different opportunities unrelated to the startup. Instead of investing the money as promised, he tricked these investors into depositing their funds into accounts controlled by Legendary Partners, which was then misappropriated.

In response to the fraudulent activities, the SEC sought a settlement with Legendary Partners and Snyder. As part of the proposed settlement, they would be permanently enjoined from violating antifraud provisions under the Securities Act of 1933 and the Securities Exchange Act of 1934. Additionally, Snyder would be barred from participating in the issuance, purchase, offer, or sale of any security, except for personal transactions, and would be subject to an officer-and-director bar.

If the court approves the settlement, Snyder would be held liable for $42,636 in disgorgement, $9,956 in prejudgment interest, and a $50,000 civil penalty. Legendary Partners, on the other hand, would be liable for $184,706 in disgorgement, $43,130 in prejudgment interest, and a $184,706 civil penalty.

In light of such fraudulent activities, the SEC’s Retail Strategy Task Force and Office of Investor Education and Advocacy (OIEA) advise investors to conduct background checks on individuals offering investment opportunities. The SEC provides a free and simple search tool on Investor.gov, and the SALI database can be utilized to find information about people with judgments or orders issued against them in SEC court actions or administrative proceedings.

The investigation leading to these charges was carried out by Carolyn Kurr, Michael Grimes, and Shipra Wells, with support from trial attorney Dean Conway. C. Joshua Felker and Melissa Hodgman supervised the investigation. The SEC acknowledges the assistance provided by the Federal Bureau of Investigation and the U.S. Attorney’s Office for the Central District of California in this matter.