Plaintiffs Fourth Amended Petition - Texas State Securities Board

122. As alleged herein, HCF and RV Defendants have engaged in false, deceptive and
misleading practices in violation of Section 17.46(b)(2), (3), (5), (7), (12) and (24) when
they engaged in the conduct alleged in paragraphs 19 through 77.
CAUSE OF ACTION NO. 6
VIOLATION OF TEXAS SECURITES
ACT BY JAMES DEFENDANTS AND BESTE
123. The preceding paragraphs are incorporated by reference as if fully set forth herein.
124. The James Defendants and Beste with intent to deceive or defraud or with reckless
disregard for the truth or the law, materially aided the RV Defendants and the Licensees
in fraud or a fraudulent practice in connection with the sale of a security, or in making an
offer containing a statement that is materially misleading or is otherwise likely to deceive
the public, or in engaging in acts and practices that violate the Texas Securities Act.
Such material aid by the James Defendants and Beste violated Tex. Civ. St. Art. 581-
32(A).
125. The James Defendants with intent to deceive or defraud or with reckless disregard for the
truth or the law, materially aided and abetted Hill Country Funding and those who sold
the Hill Country Funding investment in fraud or a fraudulent practice in connection with
the sale of a security, or in making an offer containing a statement that is materially
misleading or is otherwise likely to deceive the public, or in engaging in acts and
practices that violate the Texas Securities Act. Such material aid by the James
Defendants violated Tex. Civ. St. Art. 581-32(A).
126. Section 32(B) of the Texas Securities Act authorizes the Attorney General to seek
equitable relief against the James Defendants and Beste, including restitution, for
defrauded investors. Section 32(B) provides as follows:
In addition to any other remedies, the Attorney General may, on the request of the
Commissioner, either in an action under Subsection A of this section or in a
separate action in District Court, seek equitable relief, including restitution, for a
victim of fraudulent practices and may seek the disgorgement of any economic
benefit gained by a defendant through an act or practice that violates this Act or
for which this Act provides the Commissioner or the Attorney General with a
remedy. The court may grant any equitable relief that the court considers
appropriate and may order the defendant to deliver to each victim of any act or
practice that violates this Act or for which this Act provides the Commissioner or
the Attorney General with a remedy the amount of money or the property that the
defendant obtained from the victim, including any bonus, fee, commission,
option, proceeds, or profit from or loss avoided through the sale of the security or
through the rendering of services as an investment adviser or investment adviser
representative, or any other tangible benefit.
Tex. Civ. St. Art. 581-32(B).
State of Texas v. Retirement Value, LLC, et al.
Plaintiff’s Fourth Amended Verified Petition Page 41 of 57