SEC v. Zachary Miller - Administrative and Cease-and-Desist Proceedings

UNI TE D ST AT ES O F AM ERI CA Before th e SEC URIT I ES A N D EX CH ANG E CO MM I SSIO N SEC URIT I ES A CT OF 19 33 Relea se N o. 11 40 9 / Marc h 5, 20 26 SEC URIT I ES E XC HA NGE AC T OF 19 34 Relea se N o. 10 49 33 / Mar ch 5, 2026 ADMI NIST R ATI VE P R O C EED ING Fil e No. 3-22 607 In th e Matter of Z achar y Miller, Re spon dent. OR DER INSTI TUT IN G ADMI NISTR A TI VE AND CEA SE-AN D-DESI ST PR OCEE DING S, PU RSU ANT TO SECT ION 8A OF THE SEC U RIT IES A C T OF 1933 AND SECT IONS 15(b) AND 21C OF TH E SEC URITI ES EXCH ANGE ACT O F 1 934, M AKI NG FI NDI NGS, AND IMPO SING REME DIAL SAN CTIO NS AND A C EASE- AND-D ESIST OR DER I. Th e Securi ti es an d Exch ange Commi ssio n (“ Com missi on ”) deems i t ap propri ate an d i n th e publ ic i ntere s t th at publ ic a dmini strati ve and ce ase -an d-de s i s t procee di ngs be, an d here by are, in s ti tuted p ursuan t to Secti on 8A of the Secu riti es Ac t of 1933 (“ Secu ri tie s Act ”) and S ect i on s 15(b) an d 21C o f th e Securi ti es Exch ange A ct of 1934 (“Exch ange Act ”) a gai nst Zach ary Mill er (“ Mi lle r ” o r “Respo nden t”). II. In an t ici pation of the in s ti tutio n of these proc eedi ngs, Re spon dent has subm itt ed an Off er o f Se ttl emen t (th e “Off er”) w hi ch th e Co mmi ssion has de term i ned to acce pt. S ol ely for th e purpo se of th ese pro ceedi ngs an d any o the r procee dings brou ght by or o n be half o f t he Co mmi ssion, or to whi ch th e Commi ss i on is a pa rty, an d with out a dmit ting o r denyi n g the fi n din gs h erein, except a s to the Co mmi ssio n’s j urisdi ctio n ov e r hi m and t he su bjec t ma tter o f t hese proc eedi ngs, wh ic h are adm itt ed, an d exce pt a s prov ide d herei n in Sect ion V, Re spon den t co nsen ts to the e ntry of thi s Orde r In s ti tuti ng Adm inistra tiv e and Cea se-a nd -Desi st P roce edi ngs, P ur suant to Secti on 8A o f the S ecu riti es Act of 1933 a nd Sec tio ns 15(b) and 21C o f th e Secu rit i es Excha nge Ac t o f 1934, Ma ki n g F i ndings, an d I mposi ng Rem edia l San ctio ns an d a Cea s e-an d-Desi s t Orde r (“Orde r”), as s et f orth bel ow.

2 III. On th e ba sis o f th is Orde r and Respo nden t’s Of fer, th e Commi ssio n fi nds 1 th at: Su mma ry 1. Th is pro cee di ng a rise s f rom an oil an d gas o ff eri ng f rau d i n wh i ch, betw een at l ea st Oc to be r 20 18 an d Decem be r 2 021, Th e Heartl an d Grou p Ve nt ure s, LL C (“ H e artl an d Gro up Ve nt ur es”), H ea rtla nd Prod ucti on and Re co very LL C (“ Heart lan d P rod ucti on ”), six o the r Heartl an d -af fili ate d enti tie s, and f our He artl and-af fil iated i ndi vi duals (col l ect iv ely, “ He artl an d”), r ai sed app roxi mate ly $1 22 mi lli on f rom more th an 700 i nv estor s n ati on wi d e th ro ugh fiv e fr audul en t an d unre gist ere d s ec urit i es of fe ri ngs f or whi ch t here wa s n o a ppli cabl e regi st rati on exem ptio n (“ H ea rtl an d O ff eri ngs”). 2. B et ween Fe brua r y 20 19 an d Dece m ber 202 1 (th e “ rel e va nt tim e pe rio d”), Mi ll er a cte d a s an un regi ste re d bro ke r on be h al f of He artl and in con ne cti o n wi th four of i ts un re gi s te red se cu riti es of fe rin gs. Mill er rai sed a p proxi mat ely $1 8,3 04, 500 f o r th e Heart l and Off eri ngs t hro u gh th e o ff er an d sal e of unre gis ter ed sec uri tie s to 69 in divi dual in ves tor s, in c l udin g Mi lle r ’ s wi fe, both di rect ly and in di rectly th rou gh a “ fee de r f und,” a comp any th at Mill er whol ly own ed and co ntro lle d. Mi l ler, amo ng oth er t hi ng s, so lic ite d in vesto r s di rec tly and in dire ctly to in vest in cer tai n Hea rtl an d Of feri n gs, p rovi de d adv ice to inv est or s rel ati ng to th e He artl an d Off eri ngs, a ssi sted i n vesto r s i n co mpl etin g i nve stmen t doc ument s, assi ste d i nv estor s in tran sf erri ng t hei r f und s to He art l and, and r ecei v ed t ran sacti on -bas ed co m pen sati on f rom Hea rtl and fo r th o se s al es. Mill er w a s no t regi stere d a s a brok er -deal er wi th th e Co mmi ssi on o r a ssoc iat ed wi th a re gi ster ed brok er-d eal er du rin g th e r el eva nt ti me peri od. Re spon dent 3. Z ach ar y Mil ler, ag e 44, re s i des in Bir dsbo ro, Pen nsy lva n i a. At all rel eva nt ti me s, Mi l ler h as bee n l ice nse d as an in sur ance ag ent i n th e st a te of Pen n s yl vani a. Bet ween J une 201 9 an d De cem be r 202 1, Mill er o wne d an d co nt rol led D& G In v e s tm ent Fun d 2, LL C (“D& G Inv e s tmen t Fun d 2”), D& G I nv estme nt Fund 201 9, L LC (“ D&G I nv estme n t Fund 20 19”), D& G In ves tmen t Fun d 4B, LL C (“ D&G I nv est men t F un d 4B”), an d D & G In vest m ent Fun d II I, LLC (“ D& G I nv est ment Fun d I II”), “ fe e der f un ds ” h e util i z e d to sol ici t i nve stm ent s in He artl and sec u ri t ie s. Mi l ler h as nev er b een re gi ste red o r a sso ci ate d wi th a Co mmi ssi on regi stra nt in a ny c apac i t y. Oth er Relevan t En titie s 4. H eartl an d Pr odu ction an d Recov er y LL C and Th e He artl an d G rou p Ven tu re s, LLC are De l aware an d T exa s li mit ed lia bili ty com p ani es, re spect iv e ly. H ea rtl an d Pro duc ti on wa s 1 The fin dings here in are made pursuant to Resp ondent’s Offe r of Sett l e ment and are not bin d ing on any other pers on or en t ity in this or any other proceeding.

3 f orm ed on Octo ber 2, 201 8, an d i t s pri n ci pal plac e o f bu s i ne ss wa s i n M ansf iel d, T exa s. Heartl and Group Ven ture s wa s fo rmed on Augu st 26, 201 9, a nd i ts prin ci pal pl ace o f busi ne s s was in Fort Wo rth, Te xas. On Dec em ber 1, 202 1, th e Commi ssion fil ed a ci vil acti on in fe deral co urt agai nst Heartl an d Group Vent ures, Hea rtla nd Produc ti on, si x Heart lan d -aff ili ated e nti t i es, fo ur H ea rtl and- af fili ated i ndivi dual s, and v ari ous oi l an d gas ope ra tors, al l eg in g th at th ey vi ola ted Sections 5(a), 5(c), and 17(a) of th e Se curities Act, and Sect ion 10(b) of the Excha nge Act and Rule 10b-5 thereun der. See SEC v. The Heartland Group Ventures, L LC, et al., No. 4:21- cv -01310 (N.D. Tex.). 5. H eartland Production and Recovery Fund LLC (“Debt Fun d I”) a nd Hear tland Production and Recovery Fund II LLC (“Debt Fund II”) are Dela ware limited lia b ili ty c ompanie s a nd The Heartl a nd Group Fund I II, LLC (“Debt Fun d III”) is a Texas limite d liability c om pa ny. Debt Fund I was formed on October 31, 2018, a nd De bt Fund II was fo rmed on January 8, 2019, with thei r pr inci pal p l a ce of bus in ess in M ansfield, Texas. Debt Fund III was fo r med on Septembe r 12, 2019, and its principal place of busine s s wa s in Fort Wo r t h, T exas. D e bt Fun d I, De bt Fund I I, a n d Debt Fun d II I i s sue d ce rtai n o f the secu riti es desc ribed h erei n. No ne o f th ese en tit ies h as eve r been regi s te red wi th t he Co mmi ss i on in any capa ci t y. 6. H eartland Drilling Fund I, LP (“ Equity F u nd I”) a nd Carson Oil Field Development Fun d II, LP (“Equ ity Fun d II”) are D elaware a nd Te xas limited partnerships, respectively, w i t h t hei r pr incipal place of busine s s in Fort Wort h, T ex as. Equ i t y Fund I was fo rmed on A pr il 15, 2019 and Equ i t y Fund II was formed on July 1, 2020. Equi t y Fund I and Equi t y Fund I I i ss ue d certa in of t he se cu riti es desc ribe d h erei n. No ne of these e nti ties h as eve r been regi s te red wi th t he Co mmi ss i on in any capaci ty. 7. D&G In vestm ent Fun d 2, LLC i s a Texas li m ited liab ili ty corporation formed in June 2019 w ith its pr in cipal place of business in Readin g, P enns y lvania. M iller wholly owned an d c ont rolled D&G Inve s tme n t Fund 2 and used it as a “feeder fun d” t o rai se funds exc l us ively fo r investm ents in th e He artlan d O ffe rings. D &G Inve s tme n t Fund 2 has never been regi s te red wi th t he Comm i s s ion in a ny capacity. 8. D&G In vestm ent Fun d 2019, LLC i s a Texas li m ited li ab ility corporation fo rmed in Ju ne 2019 with its pr incipal p lace of business in Read in g, P enns yl va nia. M iller wholly owned a nd con tr olled D&G Investment Fund 2019 and used it as a “f e eder fund” to raise f u n ds exclus ively for investments in the Heartland Off er ings. D&G Investment Fund 2019 ha s n ever been registered with the Commission in a ny capaci t y. 9. D&G In vestm ent Fun d 4B, LLC i s a Texas li m ited liability c orporation formed in O ct obe r 2020 w ith its pr incipal p lace of business in Read in g, P enns y lvania. M iller wholly o w ne d and c ont r olled D&G Inve s tment Fund 4B and used it as a “feeder fun d” t o rai se funds excl us iv el y for inv est ments in the Heartlan d O ffe rings. D &G Inve stment Fund 4B has never been re g i s tered w i t h t he C ommiss ion in any capacity.

4 10. D&G Investment Fun d III, LLC is a Te xas li m ited lia b ili ty c orporation forme d in F ebruar y 2020 with its princi p a l place of business in R eading, Pennsylvania. Miller wholl y o w ne d and c ont r olled D&G Inve s tment Fund III and used it as a “feeder fund” t o rai se funds excl us iv el y for inv est ments in the Heartlan d O ffe rings. D &G Inve s tment Fund III has never been re g i s tered w i t h t he C ommiss ion in any capacity. BAC K G RO UND 11. Betwee n at le ast Octo ber 2018 an d Octo ber 2 021, Heart lan d Group Ven tures, Heartl an d Produc tio n, a nd t hei r pri n cipa l s fra udulen tly raise d ap proxi matel y $122 mi ll ion f rom mo re tha n 700 i nv estors n ati onwi de, purpo rtedl y for work in g ov er exi sti n g wel ls o r drillin g new wel ls i n Te xas, thro ugh f iv e unre gistere d Heart l and O ff er in gs — i nvolvi ng i nvestme nts i n th ree debt f unds a nd t wo e qui t y fun ds — fo r whi ch there was n o a ppl ica bl e regi s trati on exempt io n. Over th e co urs e of the fi v e Heartl an d O ff erin gs — Debt Fun d I, D ebt Fun d II, De bt F und II I, Equi ty F und I, an d Equit y Fund I I — Heart l and s pent o nly abo ut hal f of the i nvesto r fun ds rai sed o n o il an d gas proj ect s, wh ic h coll ecti vely ge nerat ed le ss th an $50 0,000 i n rev enue. 12. B et ween Octo be r 20 18 a n d e arly 20 19, Hea rtl and reli ed o n a net work of sal es a gent s, prima rily in su ranc e agen t s an d fi n anci al a dv i s or s wh om Hear tl and c al le d “ f inde rs, ” to sol ici t p ro spec tiv e i nve stor s to i nve st in on e or mo re o f th e f iv e unr egis te red He artl and Off erin gs. B egi nni ng i n ea rly 201 9, Heartl an d sh i fted to rai sin g fun d s th rou gh a “ f ee der f un d ” m odel, i n wh ic h a “fee de r f und mana ger, ” ty pi cally t he sam e in suran c e a gent s an d f in an cial adv i sor s who ac ted as He artl an d sal es agen ts, sol ici ted pro spe cti ve i nv esto r s th ro ugh a n ew co mpany f orm e d fo r th e p ri mary pu rpo se o f sol i c i ting i n v est ment s i n H ea rtla nd. Un der th e “ f eeder f und ” m odel, in ve sto rs di d no t in ve st di rect ly in any of the f iv e un regi st er ed Heart lan d Off eri ngs. In stea d, i nv e s to rs a cqui re d an i nte rest in a “ fe ed er f und ” com pany an d en te red i nto su bsc ript i on a gree ment s an d t ran smit ted the ir f und s to a “ f ee d er fun d ” tha t was own ed an d m an aged by a sa l es a gent. A fte r r ecei v ing i nv esto r fun d s, th e s al es a gent s ca use d th e ir “ fe e der fun ds ” to en ter in to m i rror t ran sact ion s wit h H e artl an d and to s end the i nv estor s’ f und s to H ea rtl and, mi nus th e sale s age nt s’ co mmi ssio n. Many i nve sto rs did no t k now the y we re inv esti n g th ro ugh a “ f eed er f und ” an d i n st ea d b eli ev ed th ey were direct ly inv est i ng i n th e Hea rtl and Off eri ngs. 13. Heartl an d and i ts pri n ci pa l s made materi al mi srepre s e ntat ions an d omi ssio ns to in vesto rs regar di ng th e oil and gas proj ects i n o fferi n g doc ument s fo r th e fi ve unre gi s tere d Heartl an d Off erin gs. For exam ple, am on g oth er th in g s, th ey fal sely tol d inv estors th at ce rtai n oil wel ls were pro duci ng h un dreds o f ba rrels of oil a day, in c l uding wel l s th at ha d y et to produc e a si n gl e barrel of oil. Hea rtl and a nd i ts pri nci pals al so m ade mate rial mi sreprese n tati on s an d o mi ss io ns to inv estors reg ardi ng th e oi l an d gas pro je cts in mark eti ng mat erial s fo r the f iv e un regi stere d Heartl an d O ff eri ngs, fal sely repre sent in g produ cti on an d reserv es, a mo ng o ther th ings. 14. Begi nnin g in at l east 2 019, Heartl an d and i ts pri nci pals use d i nv estor f unds to make mo re tha n $26 mi l lion in Po nzi pay ments to debt fun d i nvesto rs. Miller Of fere d an d Sol d Hear tlan d Secu ritie s i n U nregist ered Tran sac ti ons a s an Unre gi s ter ed B roker -Deal er

5 15. Betwee n Fe brua ry 2019 an d Dec ember 2021, Mil l er, direc tly and th rough h i s “ f eeder f unds, ” D&G I nv estmen t Fund 2, D &G I nv estmen t Fund 2019, D&G In vestme nt Fun d 4B, an d D & G I nv estmen t Fund II I, sol i c i t ed i nvesto rs fo r th e D ebt Fun d II, D e bt F un d I II, Equi ty F un d I, a nd Equi ty Fund I I, sec urit ies o ff er in gs. Duri ng th e rel evan t ti me peri od, Mi ll er rai sed appro xima tely $18,304,500 f or Heartl and by o fferin g and sel li ng sec uri tie s to 69 i n dividua l in vesto rs, som e o f who m in veste d in more t han one f u nd, th rough unregi stere d tran sacti on s. 16. Mi ll er, di rectl y and th rough his “ f eeder f unds ” D&G I nv estmen t Fund 2, D& G I nve s tmen t Fund 2019, D&G In vestme nt Fun d 4B, and D&G I nv estmen t Fund I II, h ad agr eeme nts wi th H eartl an d to o ff er and se l l Heartl an d s ecu rit ies in e xchan ge f or co mmi ssion s an d tran sacti on - base d fees. Duri ng th e rel evan t ti me peri od, Mi ll er recei ved t ran s acti on -based compe nsati on fro m Heartl an d fo r hi s sal es of Hea rtla nd sec uri tie s. At a l l rel ev ant ti mes, Mi ll er was n ot regi stere d as a brok er-deal er an d wa s no t as s oc iat ed w i th a re gistere d bro ke r -dea ler i n a ccorda nce wi th Secti on 15(b) o f t he Exc h an ge Act. 17. Heartl an d an d its prin ci pa l s prov ided Mi ll er with off erin g and m ark eti ng do cumen ts to us e w i th pro spect iv e inv esto rs. Hea rtl and al so prep ared o ff eri ng do cumen ts fo r the D& G I nve s tmen t Fund 2, D& G I nv estmen t Fund 2 019, D & G In ve stmen t Fund 4B, an d D& G In vestm ent Fund I II “ fee der fun ds ” and gave th em to Mi ll er to use wi th prospe cti v e in vesto rs. Th ese o ff erin g an d marke tin g docum ents mi rro red H ea rtl and’s of feri n g an d marke ti ng do cumen ts. 18. Usin g thi s i nf orm at i on an d the offe ring ma teri als pro vi ded by Heartl an d, M i ll er repeat ed H eart l and ’ s re presen tati on s about h ow i nve s to r funds woul d be use d an d th e safet y of th eir i nvestme nts to pro specti ve inv estors. Mi ll er di s cussed the Heartl an d O ff eri ngs wit h i nvesto rs in person, tel epho nic ally, an d by email. Wh en i nve s to rs ha d que sti on s Mil ler c oul d no t answer, he sough t an swers f rom H eart l and an d it s pri n cipal s. Mi ll er al s o a dv i s ed i nvesto rs to i nv est in the Heartl an d Of feri ngs. 19. Wh en h e acte d as a sa l es agen t, Mi ll er soli cit ed i nvesto rs to i n vest in Heartl and secu riti es, prov i ded advi ce to th em rel atin g to th e Hea rtl an d O f fe rings, as s i s ted the m in com pletin g Heartl an d i nv estmen t docum ents, an d then fo rward ed tho s e do cumen ts to Heartl an d. M i lle r also h el ped in vesto rs transf er th ei r fun ds to He artl and a n d re cei ved 4.2 5% of th e in ve s to rs ’ in ve stmen ts as t ransact io n-based com pensati on pursuan t to hi s agre emen t wi th Heart lan d. 20. Si mil arly, when he a cted as a “ fe eder f und ma nager, ” Mi ll er assiste d i n ve s to rs i n co mple t in g th e nece s sary in v estme nt docume nts fo r the “ f eeder f un ds ” a nd t ransf errin g the ir f unds to D &G In ve s tmen t Fund 2, D& G In vestm en t Fun d 2019, D& G In vest men t Fund 4B, or D& G I nve s tmen t Fund I II, in order to use th e i nv esto rs’ fun ds to mak e i nvestme n ts i n Heartl an d secu riti es. Mi ll er the n caused t he “ f eede r fun ds ” to inv est i n Debt F un d I I, Debt F und I II, Equit y Fund I, o r Equi ty F und I I an d sent the i nv esto r s’ co ntr i butio ns to Heartl and i n exc han ge fo r Heartl an d se curi ti es. Mil l er ’s “ fee der f unds ” w i th he ld betwee n 5% t o 6 % o f th e inv esto rs ’ co ntribut ion s as h i s tran s acti o n-based compe nsati on p ursuan t to th e “fee der f und’s” ag reemen t wi th H eartl an d. Man y inv estors di d no t kn ow th e y were i nv esting th rough a “ f eeder f und ” an d

6 in s tea d be l iev ed th e y were direc tly inv esti ng in Heartl an d sec uriti es. Mi ll er l ater adv ised i nv esto rs as to whe ther th ey sho u l d re -i nv est in th e “ fe eder f und ” o r reque st th e ret urn of th e ir co nt ri but i ons. 21. Betwee n Fe brua ry 2019 an d Septem ber 20 19, Mil ler s oli cite d inv estors, at l east on e o f wh om was h is i nsuran ce cl i en t, to di rectly inv est i n Debt Fund I I. Betwee n Febr uary 201 9 an d Septem ber 2019, Mil ler re cei ve d, thro ugh D& G In ve s tmen t Fund 2019 a nd D& G I nv estmen t Fund 2, $3,67 5,000 fro m 26 i ndi vidual inv estors to i nv est in Debt F und I I secu ri ti es. 22. Betwee n Se pt embe r 201 9 an d May 2021, Mill er so lic ite d i nv estors, at lea s t o ne of who m was h is i nsuran ce cl i e nt, t o di rectly inv est i n Debt Fund I II. Betwe en Septem ber 2019 and May 2021, Mil ler rec ei ved, t hro ugh D&G I nv estmen t Fun d 2, D &G I nv estmen t Fund 4B, a n d D& G In vest men t Fund I II, $7,71 0,500 fro m 45 i ndi vidual inv estors to in ve s t i n Debt F und I II secu riti es. 23. Betwee n Jul y 2019 and Augu s t 2020, Mi ll er soli cit ed in vesto rs to di rectl y inv est in Equi t y Fund I. Bet ween July 2019 a nd Au gust 2020, Mi lle r recei ved, th rough D&G I nv estmen t Fund 2 and D&G I nv estmen t Fun d II I, $1,264,000 f rom 4 i ndi vi dual in vesto rs to i nve st i n Equi ty Fund I secu ri tie s. 24. Between Au gust 2020 an d A ugust 2021, Mi ll er soli cit ed in ve sto rs to direc tly inv est in Equity Fund I I. Be tween Augu st 20 20 an d Aug us t 202 1, Mi lle r recei v ed, thro ugh D& G I nve s tmen t Fund I II and D& G In vestme nt F und 4B, $5,6 55,00 0 fro m 27 in divi dual i nv estors to in vest i n E quity Fund I II secu rit ies. VIOL ATIO N S 25. As a resul t o f hi s con duct, Mi ll er w i llful ly 2 v iol ated Se cti on 5(a) o f th e Sec uriti es Ac t, wh i ch pro hibi ts, ab s en t an e xempt io n, th e sal e of securi ti es th ro ugh i ntersta te c omme rce or the mai l s unl ess a regi strati on stateme nt i s in effe ct. 26. As a resul t o f hi s con duct, Mi ll er w i llful ly viol ate d Sec tion 5(c) of th e Sec urit ies Ac t, wh i ch pro hibi ts, ab s en t an e xempt io n, any off er to s el l a ny se curi ty thro ugh i ntersta te co mmerce o r th e mai ls unl ess a regi strati on stateme nt h as been f i led a s to such sec urity wi th th e Co mmi ssion. 2 “Willfully, ” for purposes of impos in g re lief unde r Sect ion 15(b) of the Excha n ge Act, “‘me ans no more t han t ha t the person charged w i t h th e dut y knows wha t he is doing.’” W onsover v. SEC, 205 F.3d 408, 414 (D.C. Ci r. 2000) (quoting Hughes v. SEC, 174 F.2d 969, 977 (D.C. Ci r. 1949)). There i s no re qu irement that the actor “also be a w are t h at he is v iolating on e of t he Ru les or Acts.” Tager v. SEC, 344 F.2d 5, 8 (2d Cir. 1965). T he dec i s ion in The Robare Group, Ltd. v. SEC, which construe d t he ter m “willf u ll y” for purposes of a differently structured st atutory provision, does not alter that standard. 922 F.3d 468, 478-79 (D.C. Cir. 2019) (settin g forth t he s ho w ing requi red t o e s tablis h that a p erson has “w illf u lly omit[ted]” mat erial informat ion from a required di s clo s ure in vi olation of Section 207 of t he Ad vi s ers Act).

7 27. As a resul t o f hi s con duct, Mi ll er w i llful ly viol ate d Sec tion 15(a)(1) of the Exch ange Act, whi ch pro hibi ts any brok er or dea l er fr om ef fe ct i ng any tran saction in, o r in ducin g o r atte mpti n g to in duce th e purcha se o r sal e of, any s ecuri ty unl ess the bro ke r or de ale r is regi stere d in acco rdance w i th Sect io n 15(b) of the E xc han ge Act o r i s a n atural per son w h o i s as soc i ated wi th a regi ste red bro ker o r dea ler. DISGO RGEM E NT A ND PRE JUDGM ENT I N T ERE ST 28. Th e disgo rgemen t and prej udgme nt in terest o rdered i n paragra ph I V.B i s c on si sten t wi th equit able prin c i pl es an d does n ot exc ee d Res ponden t’s ne t prof its f rom hi s vio latio ns, an d will be di stri buted to ha rmed i nv esto rs to the e xten t fe asibl e. Th e Com mi ss i on w ill hol d f un ds pai d pursua nt to para graph IV.B i n a n acco unt at th e Uni ted State s Tr eas ury pendi ng di stri buti on an d may com bine t he f unds wi th f unds re cei ved i n ot her rel ated Co mmi ssio n pro ceedin gs, in cl uding wi th out li mit at io n f u nds re cei v ed i n SEC v. The H ea r t land G roup V entur es, LLC, et al., No. 4: 21- cv -013 10 (N.D. T ex.) (“Ci vil Ac tion ”). Upo n appro val of the di stri bution fin al a cco untin g by the Co mmi ssion, any amo unts rema ini ng th at are inf easi bl e to re turn to inv esto rs, a nd an y amoun ts return ed t o th e Comm issi on in the future t h at a re i nf ea si bl e to re turn to in ve s to rs, may be tran sferre d to the ge ne ral f und o f th e U.S. Trea sury, subj ect t o Secti o n 21F(g) (3) of the E xchan ge Ac t. MIL LE R’S C OOP ERAT I O N 29. I n de termi ning t o acc ept th e O ff er, th e Com mi ss i on con sidere d Re s po nde nt’s co operat ion with t he Co mmi s sion ’s staf f i n th e inv estiga ti on an d Ci vil A ct i on. UND ERTA KING 30. Res pon den t has un dertak en n o t to seek o r obt ain, on b eha lf of him sel f or h is spou se, a ny di s tri buti on f rom the Re ceiv er appoi nt ed by the Uni ted Sta te s Di s tri ct Co urt f or th e Di stri ct of Texas in SEC v. T he Hea rtl and Grou p Ven ture s, LLC, e t al., No. 4: 21- cv -013 10 (N.D. Tex.). I n dete rmini n g whe th er to a ccept th e Off er, th e Co mmi ss i on has co nsi dered th is un dertak i ng. IV. In vi ew of th e foregoi n g, the Co mmi ss i on deem s i t appro pria te and i n th e publ ic in terest to i mpose th e san cti ons agre ed to i n Respo nden t ’s Of fer. Acc ordi ngly, pursuan t to Sec tio n 8A of the Sec uriti es Act an d Sec tion s 15(b) and 21C o f th e Exch ange A ct, i t is h ereby ORDERE D t hat: A. R e s pon den t c ea s e and de sist fro m c o mmi ttin g o r c a usin g any v iol atio ns an d any f ut ure viol ati ons of Sect i on s 5 (a) an d 5(c) of th e Sec urit ies Act and Sec tio n 1 5(a) (1) of the E xchan ge Ac t.

8 B. Respo nden t sha ll, wi thi n 30 day s of the entry of t hi s Orde r, pay di sgorgeme nt o f $61 2,417 an d p rej udgmen t in terest o f $1 19,20 4 to the Sec uri tie s an d Excha nge Commi ssion. If ti mely pa y men t i s no t made, ad diti on a l i ntere s t sha ll accrue purs uant to S E C Rul e of Practi ce 6 00. Pay men t must be made in one o f t he foll owin g way s: (1) Res pon den t may transmi t pay men t el ectro ni ca lly to t he Comm issi on, w hi ch wi ll provi de deta il ed ACH tran sf er/Fe dw i re in struct ion s upon reque st; (2) Res pon den t may make di rect pay me nt f r om a ban k acc oun t via Pay.gov th rough the SEC websi te at htt p:// w ww. s ec.gov /about /offi ces/o fm.h tm; o r (3) Res pon den t may pay b y certifi ed ch eck, bank cashi er’s ch eck, o r Un it ed State s po stal mon e y orde r, made pay abl e to the Sec uriti es an d Exch an ge Co mmi ssion and h an d -deli vere d or mai l ed to: En terpri s e S erv ice s Ce n ter Ac co unts Rece iv abl e Bran ch HQ Bl dg., Roo m 181, A MZ-341 650 0 So uth Mac Art hur Bo ul evard Okl aho ma Ci t y, OK 731 69 Pay men ts by che c k o r mon ey order mu st be a cco mpa nied by a cov er le tter i denti fyin g Zac ha ry Mill er as a Respo nden t in th ese proce edi ngs, and th e f ile n umber o f th ese pro cee di ngs; a co p y of t he c ov er le tte r an d chec k o r mo ney order m ust be sen t to An ne C. McKin l ey, Assista n t Di recto r, Di vi s i on of E nfo rcemen t, Secu ri tie s an d Exch ange Commi ssion, 175 W est Jack son Bo ul evard, S uit e 1450, Chi cago, IL 606 04. C. Respo nden t ack nowl edges th at th e Comm issi on i s n ot i mposi ng a civi l pen a l t y base d upo n h is co operat ion in a Commi ssio n in v esti g ati on an d rel ated en fo rcemen t act ion. If at any tim e foll owi ng th e ent r y of the Order, th e D i visi on o f Enfo rcemen t (“Di vi sion”) obt ain s in format ion in d i catin g tha t Respo nden t kn owin g ly provi ded ma teri ally f al se or mi sl eadin g in format ion or ma teri als to the Commi ssio n, o r in a rela ted proc eedi ng, t he Di vi sion may, at i ts sol e di screti on an d with pri or n oti ce to the Respon dent, pe ti ti on th e Com mi ss i on to reope n thi s mat ter an d see k an orde r di recti ng t hat t he Respo nden t pay a ci vil mon ey penal t y. Respon dent may con test by way of defe n se in any result ing adm i nistrat iv e proc eedi ngs wheth er he kn owin gly prov i ded materi all y fal se or mi sl eadi ng inf ormat ion, b ut may n ot: (1) co ntest t he f in d i ngs i n t he Orde r; or (2) as sert any def en s e to li abili t y or rem edy, in cludin g, but n ot limi ted to, any statute of li m i tation s defen se. V. I t i s furth er Orde red t hat, sol ely for purpo ses o f e xcep ti ons to disch arge set f orth in Secti on 523 of th e Bank ruptcy Co de, 11 U.S.C. § 523, th e f in dings i n t hi s Orde r ar e tr ue an d admi tte d by Res pon den t, and f urthe r, any debt f or di sgor gemen t, p rej udgmen t in tere st, civi l pen al t y or o the r

9 amo unts due by Respo nden t un der thi s Orde r or an y othe r judgme nt, o rder, con sent order, decre e o r settl emen t agree men t en tered i n co nn ection with this pro ceedi ng, i s a de bt f or th e vi olat ion by Res pon den t of t he f ederal secu rit ies l aws or a ny regul ati on o r order i ssued under such la w s, a s set f ort h in Sectio n 523(a) (19) o f th e Ban kruptcy Co de, 1 1 U.S.C. §52 3(a)(19). By th e Commi ss i on. Van es sa A. Coun try man Secre tary