The Securities and Exchange Commission today charged Brentwood, Tennessee resident Clayton R. Thomas and the now defunct entity he controlled, Personalized Healthcare Solution, LLC, with selling fraudulent promissory notes and misappropriating investor funds.
The SEC’s complaint, filed in the United States District Court for the Middle District of Tennessee, alleges that, from February until June 2019, Thomas and Personalized Healthcare Solution raised approximately $730,000 from a single investor, telling that investor that they would purchase certain medical devices and place the devices in medical offices to generate an investment return from usage fees.
In reality, according to the complaint, Thomas and Personalized Healthcare Solution overstated the purchase price of the medical devices and fraudulently inflated the medical devices’ anticipated returns.
The complaint also states that Thomas knew that the investment would likely be far less profitable than what he told the investor based on prior experience with a different investor in which the medical devices produced little to no return.
Finally, the SEC alleges that the investor lost substantially all of its original investments, and that Thomas misappropriated investor funds for his personal use by pocketing the difference between the actual cost of the medical devices and the amount that he represented to the