TDCI Fines Chattanooga Corporation for Securities Violation

NASHVILLE –The Tennessee Department of Commerce & Insurance (TDCI) announces disciplinary action against a corporation found in violation of the state’s securities law. Chattanooga-based Wortham Labs was fined for the sale of an unregistered security by an unlicensed broker/dealer.

A Consent Order, finalized August 12, 2016, imposes a $1,000 civil penalty for the violation. Wortham Labs admits that a security/investment contract sold to a Tennessee investor was not registered with TDCI’s Securities Division as required by state law. In addition, the security/investment contract was sold directly by Wortham Labs and not by an agent or broker properly registered with TDCI, also a violation of the law.

Wortham Labs has complied and cooperated with the investigation by the TDCI Securities Division and has since made full restitution of the investment funds to the investor.

“Orders like this one are necessary for the protection of investors,” said TDCI Assistant Commissioner for Securities Frank Borger-Gilligan. “We urge Tennesseans to know the law before buying or selling securities.

The Consent Order between TDCI and Wortham Labs can be found on the TDCI website. Tennesseans are encouraged to visit the Department’s website where they can inspect disciplinary actions and verify licenses of security and insurance professionals.

If you suspect that you might be a victim of securities or insurance fraud, or if you would like to file a complaint or speak with an investigator, please contact the Tennessee Securities Division – Financial Services Investigations Unit at (615) 741-5900. To file a complaint online, visit https://tn.gov/commerce/article/securities-file-a-complaint.

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