A panel found that between 2006 and 2010, Michael Knight and Jeffrey Wiegel raised $3.6 million selling securities without a prospectus and without being registered.
That money is gone — the commission says many individual investors lost $50,000 to $100,000 each.
Knight has been ordered to pay a $300,000 penalty and is permanently banned from trading in securities, being a corporate officer, working in investor relations or acting in any capacity in the securities market.
Wiegel faces a $100,000 fine and a 10-year ban on being a corporate officer or doing anything in connection with the securities market.
Both have been ordered to pay back the millions they raised and lost.