SEC v. David Howard Welch, et al (boiler rooms, 2017)

Settled

✓ Checked against the primary document on October 4, 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 2017, the SEC charged six unregistered broker-dealers and a penny stock company with selling shares of New Global Energy and other companies in unregistered transactions through boiler-room sales agents, raising over $10 million over four years. Two defendants had settled by the release date; of the rest, the only later outcome we found is a December 26, 2018 consent judgment against New Global Energy's CEO Perry D. West with a $30,000 payment and a penny stock bar.

The record

What was ordered

Civil penalty

$30k

Disgorgement

—

Prejudgment interest

—

Total relief

$30k

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 SEC announced this matter on September 28, 2017 as litigation release 23947. The defendants named include David H. Welch, Marc J. Bryant, John C. Knight, Bio-Global Resources, Inc., Diversified Equities Inc., Diversified Equities Development Inc., New Global Energy Inc. and its CEO Perry D. West, in a complaint filed in the Central District of California. The charges are Section 15(a)(1) broker registration against the six sellers and Section 5 against all. Only Mr Knight and Diversified Equities had settled at the release date, with a penny stock bar and a separate industry bar for Mr Knight and money left to the court.

Outcome: the SEC's posted final judgment as to West (Central District of California, December 26, 2018) records that he consented to its entry. It bars him from penny stock offerings with a right to apply for reentry after three years, and orders him to pay $30,000 under Section 20(d), which is a civil penalty. This outcome covers West only. We found no source for the other defendants, including Welch, Bryant, the companies and the amounts for Knight, and did not check them, so the matter may not be fully resolved.

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

What technique is this, and how does it work?

This action is tagged with one technique 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.

Timeline

1. 2017-09-28 Litigation release published
2. 2018-12-26 Consent final judgment entered against Perry D. West (C.D. Cal.)

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
• Final judgment as to Perry Douglas West (C.D. Cal., December 26, 2018)

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.

Related actions

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

Record added September 10, 2026. submit a correction.