SEC v. Carol J. Wayland, et al. (boiler rooms, 2019)

Judgment entered

Checked against the primary document on October 2, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In 2019, the SEC announced final judgments in a 2017 case against an oil-well partnership, its founder Carol J. Wayland and three promoters, alleging they sold unregistered securities to 41 investors, raising about $2.4 million, through a boiler room. The release records a $464,665 civil penalty for Ms Wayland and combined disgorgement and interest of $528,722 against her.

The record

Structured fields for this action, as recorded in our case library.
Agency	SEC
Release number	LR-24542
Date filed	2019-07-19
Date resolved	2019-07-19
Court	U.S. District Court, Central District of California
Status	judgment
Criminal parallel	Yes: guilty plea (Dow and Wayland), 2019-06-25
Defendants	Carol J. Wayland (individual) ; Kentucky-Tennessee 50 Wells/400 BBLPD Block, Limited Partnership (entity) ; HP Operations, LLC (entity) ; C.A.R. Leasing, LLC (entity) ; Mitchell B. Dow (individual) ; Barry Liss (individual) ; Steve G. Blasko (individual)
Cited as charged or alleged	Exchange Act s.10(b) and Rule 10b-5 ; Exchange Act s.15(a) ; Securities Act s.17(a) ; Securities Act s.5 (statutes and rules cited in the document; not a finding that they were violated)
Techniques	Boiler rooms , Unregistered distributions

What was ordered

Civil penalty: $465k
Disgorgement: $529k
Prejudgment interest: —
Total relief: $993k
Alleged gain: —

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

the Securities and Exchange Commission announced this matter on July 19, 2019 as litigation release 24542. The defendants are Carol J. Wayland, the partnership KT 50, HP Operations, LLC, C.A.R. Leasing, LLC and promoters Mitchell B. Dow, Barry Liss and Steve G. Blasko. The complaint (C.D. Cal., filed July 6, 2017) alleges that from May 2014 to March 2016 KT 50 raised about $2.4 million from 41 investors using a boiler room Ms Wayland set up and staffed with the three promoters, who acted as unregistered brokers, and that investor money was misappropriated. Final judgments entered April 18, 2019 order Ms Wayland to pay combined disgorgement and interest of $528,722 and a $464,665 penalty, and each of the three promoters a $160,000 penalty plus combined disgorgement and interest of $225,839, $182,911 and $67,658. Ms Wayland and Mr Dow pleaded guilty in a parallel criminal case. The record previously showed the $528,722 combined figure as interest and omitted the penalty.

This library tags the matter as boiler rooms, unregistered distributions, based on the conduct the document describes. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

What technique is this, and how does it work?

This action is tagged with 2 techniques in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

Boiler rooms — see how it works, what statute it engages, and every other action tagged the same way.
Unregistered distributions — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

2019-07-19 Litigation release published

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

SEC litigation release

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Same matter

The library links these 2 records because they appear to concern one matter: the same lead defendant, an overlapping technique tag and close filing dates, or a shared court docket or a release that cites the other. Records are listed by date filed.

Date filed	Agency	Record	Status
2017-07-07	SEC	SEC v. Steve G. Blasko (boiler rooms, 2017)	Judgment entered
2019-07-19	SEC	SEC v. Carol J. Wayland, et al. (boiler rooms, 2019)(this record)	Judgment entered

This grouping is the library's, made by matching names, techniques, dates and citations when the site is built. It is not the regulator's or a court's determination that the records are one case, and it errs towards missing a link rather than making a false one.

Other actions in the library sharing at least one technique tag with this one.

Action	Agency	Filed	Technique	Penalty	Status
SEC v. Bio Defense Corporation, et al. (boiler rooms, 2019)	SEC	2019-09-13	Boiler Rooms , Unregistered Distributions	—	judgment
SEC v. Andrew Stitt (boiler rooms, 2019)	SEC	2019-02-06	Boiler Rooms , Unregistered Distributions	—	judgment
SEC v. Peter H. Pocklington, The Eye Machine LLC and others (boiler rooms, 2018)	SEC	2018-04-05	Boiler Rooms , Unregistered Distributions	$2.4m	settled
SEC v. Steve G. Blasko (boiler rooms, 2017)	SEC	2017-07-07	Boiler Rooms , Unregistered Distributions	$945k	judgment
SEC v. Commodore Financial Corp., et al. (boiler rooms, 2015)	SEC	2015-10-01	Boiler Rooms , Unregistered Distributions	—	settled
SEC v. Joseph Hilton a/k/a Joseph Yurkin (boiler rooms, 2013)	SEC	2013-08-09	Boiler Rooms , Unregistered Distributions	—	judgment

Record added September 10, 2026. submit a correction.