It said in an order the Enforcement and Investor Protection Department found that CAVHC was publicly offering securities to the public without the necessary license from the commission.
The SEC said CAVHC’s operations could be considered a Ponzi scheme where the profits or payout should be taken from incoming investors or additional pay-ins of existing members. The company also does not have any legitimate business where it could source its promised return on investments to its investors, it said.
The SEC said it found CLGC to engage in the sale of motorcycles, which is in not in line with it primary purpose stated in its registration papers with the SEC, which is to engage in the business direct selling of food franchise, food supplement, wellness and beauty.