SEC Charges Recidivist and Others in Real Estate Offering Fraud

The Securities and Exchange Commission has taken legal action by filing a complaint against Brady Speers, Chatree “Ben” Thiranon, and GHAP, LLC, operating under the name Blue Star Texas (“Blue Star”). This action is in response to their alleged operation of a deceptive house-flipping scheme that managed to amass nearly $8 million from around 40 investors. The scheme involved the unauthorized sale of promissory notes. The trio, consisting of Speers, Thiranon, and Blue Star, purportedly promised investors that their contributions would be utilized to purchase, renovate, and sell residential properties. However, the SEC’s complaint contends that these funds, which exceeded $2.9 million, were diverted by the defendants to cover personal expenses and were even used for Ponzi-like payments.

The complaint further outlines that Speers, Thiranon, and Blue Star—of which they held ownership and control—engaged in raising funds through misleading and material omission. The SEC alleges that Blue Star provided misleading information to investors, asserting that their investments were backed by property interests in the real estate assets associated with the ventures. Contrarily, the reality was that Blue Star only sporadically secured investor interests with property and sometimes didn’t even possess the properties in question. The SEC also asserts that Blue Star inappropriately shifted investor funds to other projects without obtaining the necessary authorization. Moreover, the complaint maintains that Blue Star showcased Speers’s business expertise and background, neglecting to disclose his previous charge by the SEC for violating antifraud provisions of federal securities laws in 2015, as well as his dual instances of personal bankruptcy.

The complaint, submitted to the U.S. District Court for the Northern District of Texas, charges Speers, Thiranon, and Blue Star with infringing upon Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5, along with Section 17(a) of the Securities Act of 1933 (“Securities Act”), as well as the securities registration regulations encompassed within Sections 5(a) and 5(c) of the Securities Act. Without conceding or denying the SEC’s allegations, Speers, Thiranon, and Blue Star have opted for a partial settlement. This settlement involves their consent to a judgment that permanently restrains them from future violations associated with the aforementioned charges. Furthermore, each party is to make payments for disgorgement, prejudgment interest, and civil penalties, amounts of which will be established by the court in response to future SEC motions. Both Speers and Thiranon have also consented to conduct-based injunctions and have agreed to refrain from holding positions as officers or directors of publicly-traded companies. Finally, the defendants have also assented to the appointment of a liquidation agent tasked with selling properties currently undergoing renovation. The effectiveness of these partial settlements is contingent upon court approval.