Mantria Update #15

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934 Release No. 61654 / March 5, 2010
ADMINISTRATIVE PROCEEDING File No. 3-13760
:
In the Matter of
:
ORDER MAKING FINDINGS
:
AND IMPOSING REMEDIAL
Donna M. McKelvy, Respondent.
: : : :
SANCTIONS PURSUANT TO SECTION 15(b) OF THE SECURITIES EXCHANGE ACT OF 1934
:
I.
The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest to enter this Order Making Findings and Imposing Remedial Sanctions pursuant to Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Donna M. McKelvy (“McKelvy” or “Respondent”).
II.
Following the institution of these proceedings on January 22, 2010, Respondent has submitted an Offer of Settlement (the “Offer”) which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings herein, except as to the Commission’s jurisdiction over her and the subject matter of these proceedings, and the findings contained in Section
III.2 below, which are admitted, Respondent consents to the entry of this Order Making Findings, and Imposing Remedial Sanctions Pursuant to Section 15(b) of the Securities Exchange Act of 1934 (“Order”), as set forth below.
III.
On the basis of this Order and Respondent’s Offer, the Commission finds that:
1.
From at least September 2007, through at least November 2009, Respondent used the titles of vice president and president of Speed of Wealth, LLC, and was involved in investor relations. Respondent is also a part owner of Speed of Wealth, LLC. Respondent does not hold any securities licenses and she acted as an unregistered broker in connection with her offer and sale of securities. Specifically, Respondent made use of the mails or means or instrumentalities of interstate commerce to effect transactions in or to induce or attempt to induce the purchase or sale of a security without being registered with the Commission in accordance with Section 15(b) of the Exchange Act.
2.
On December 16, 2009, an order of permanent injunction was entered by consent against McKelvy, permanently enjoining her from future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 thereunder, in the civil action entitled Securities and Exchange Commission v. Mantria Corporation, et al., Civil Action Number 1:09-CV02676,
in the United States District Court for the District of Colorado.
3.
The Commission’s complaint alleged that, from at least September 2007 through at least November 2009, Defendants, including McKelvy, sold the securities of Mantria Corporation and its subsidiaries and affiliates by making materially false representations to investors regarding, among other things, the intended use of the proceeds from the sale of such securities, the past rates of return that had been paid to other investors in such securities, and regarding the operational success of the companies issuing the securities. The complaint also alleged that Defendants omitted the material fact that the proceeds from the sale of these securities were used, in Ponzi-like fashion, to pay off earlier investors in these securities. The complaint further alleged that McKelvy acted as an unregistered broker and sold unregistered securities.
IV.
In view of the foregoing, the Commission deems it appropriate and in the public interest to impose the sanction agreed to in Respondent McKelvy’s Offer.
Accordingly, it is hereby ORDERED:
Pursuant to Section 15(b)(6) of the Exchange Act, that Respondent McKelvy be, and hereby is barred from association with any broker or dealer;
Any reapplication for association by the Respondent will be subject to the applicable laws and regulations governing the reentry process, and reentry may be conditioned upon a number of factors, including, but not limited to, the satisfaction of any or all of the following: (a) any disgorgement ordered against the Respondent, whether or not the Commission has fully or partially waived payment of such disgorgement; (b) any arbitration award related to the conduct that served as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a
customer, whether or not related to the conduct that served as the basis for the Commission order; and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct that served as the basis for the Commission order.
For the Commission, by its Secretary, pursuant to delegated authority.
Elizabeth M. Murphy Secretary

Mantria Update #14

The following article concerning Mantria was taken from Philadelphia Inquirer on March 24, 2010.


Another twist in alleged Mantria fraud case
By Harold Brubaker

Inquirer Staff Writer

Here's an unusual twist in a case of alleged investment fraud: The supposed victims want to keep the suspect business alive.

Investors in Mantria Corp., founded by Manayunk resident Troy Wragg, have formed a group to try to salvage the company's operations in Tennessee, according to court filings this week.

Mantria's assets were frozen after the Securities and Exchange Commission in November accused Wragg and others in a $30 million "green" Ponzi scheme in a civil lawsuit filed in Denver.

The investors seeking control of assets remain convinced that Mantria's most recent business initiative, a biorefinery that turns waste into a charcoal-like substance - called biochar - that can sequester carbon in soil, is for real and has a bright future.

The move by Mantria investors is just one of several that is making the case against Wragg - who was ordered to appear in federal court in Denver Friday to face contempt charges - and his codefendants increasingly complex.

In addition to a firm that Mantria investors would like to work with to develop the biochar business, Wragg's sister, Tisa Dixson, has helped form a competitor, Carbon Black Global L.L.C., to commercialize the technology central to Mantria's plans.

As to the transfer of Mantria assets to a new investor-owned company, Kurt L. Gottschall, assistant regional director for the SEC in Denver, said yesterday in an interview that only a federal judge has the power to release those assets.

If the investor group or someone else asked for that release in court, Gottschall told the group, "we can't agree to that at this time."

More than a dozen securities offerings were conducted by Mantria and related entities, Gottschall said. Some of the money from those offerings went to the assets Mantria investors would like to take over. Other offerings went to other "purported business ventures," he said.

"We've got to marshal assets for all of the Mantria investors, not just those that want to carry this on as a business," he said, referring to the biochar venture.

In court documents seeking a contempt-of-court order, the SEC alleged that Wragg, 28, helped to form a new company, Enantios Inc., that aimed to take over frozen Mantria assets and that he signed a contract transferring frozen assets worth $250,000.

In January, Wragg was negotiating the sale of biochar on behalf of "our company, Enantios Inc.," according to a document filed by the SEC.

Reached yesterday by telephone, Wragg said he had no comment beyond the court filings. His lawyer, Steven W. McDonald of Berliner McDonald P.C. in Greenwood Village, Colo., did not return a call seeking comment.

In his defense against the contempt charges, Wragg denied that he had any involvement in the formation of Enantios and said he had no ownership interest in the company, which was formed in December.

He said he was coerced into signing a contract transferring the equipment to two men owed rent on property in Tennessee.

Meanwhile, some Mantria investors are unshaken in their belief in Wragg and his business partner, Amanda Knorr.

They "put together a company that, had it been left alone, would have exceeded all investors expectations and provided countless new jobs in an industry that would have had a huge positive effect on both our environment and country," Bruce L. Yates, who invested $1.9 million in Mantria, said in an affidavit dated March 19.




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Contact staff writer Harold Brubaker at 215-854-4651 or hbrubaker@phillynews.com.





CURRENTLY SHOWING ON PHILLY.COM

Mantria Update #13

Parties interested in the BioChar technology continue their Legal Maneuvering. Mantria Investors have more reason for hope than at the beginning of the year. There appears to be some marketing appeal. Investors are encouraged to be patient as it may take some time for this technology to be reorganized.

Mantria Update #12

In order to recoup Mantria investment funds, some Mantria investors are working with Voiparty. (www.Voiparty.com) It costs $290 (one time fee) to get set up and it is simple to participate. Let me know if you have any questions. (bgreinke@live.com)

Mantria Update #11

The Committee of Mantria Investors has been developing some business plans to keep our technology moving forward. If you have not received Merril Rowe's email on ~February 21, please contact me. (bgreinke@live.com)

Mantria Update #10

I have just received notification that Wayde Mckelvy's hearing scheduled on January 27, 2010 has been postponed. It appears that it will be rescheduled in approximately two weeks. I will send out email notifications when I have the date and time confirmed.

Does anyone know for how long Wayde's hearing is scheduled? Thank you!