On November 30, 2022 and December 13, 2022, the U.S. District Court for the District of New Jersey entered Final Judgments against Gerard R. Hug and Kurt W. Streams, former executives of SITO Mobile, Ltd., a mobile advertising provider based in Jersey City, New Jersey.

The SEC's complaint filed on August 5, 2019 alleges that SITO's former CFO, Kurt W. Streams, fraudulently used SITO funds to pay for at least $200,000 of personal living expenses, including his Netflix and Amazon Prime subscriptions, pet groomers, eyewear, and vacations. Similarly, the SEC's amended complaint filed on December 7, 2022 alleges that SITO's former CEO, Gerard R. Hug, improperly charged SITO's corporate credit card with approximately $77,000 in personal expenses, and approximately $160,000 in expenses that had no apparent business purpose or for which Hug did not provide sufficient verification. The amended complaint further alleges that Hug regularly used SITO's corporate credit card to pay for personal expenses such as family vacations, sporting tickets, designer clothes, luxury items, donations to his son's private school, and college living expenses for his daughter.

Without admitting or denying the SEC's allegations, Streams consented to the entry of a final judgment permanently enjoining him from violating Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, Section 13(b)(5) of the Exchange Act, Rules 13a-14, 13b2-1 and 13b2-2 of the Exchange Act; and aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and (B), and 14(a) of the Exchange Act and Rules 12b-20, 13a-1, 14a-3 and 14a-9 thereunder; ordering Streams to pay disgorgement in the amount of $48,796.00 and a civil penalty in the amount of $20,204.00; and ordering a two-year officer-and-director bar . On January 13, 2023, the Commission issued an administrative order barring Streams from appearing or practicing before the Commission as an accountant pursuant to SEC Rule of Practice 102(e).

Without admitting or denying the SEC's allegations, Hug consented to the entry of a final judgment permanently enjoining him from violating Section 17(a)(3) of the Securities Act, Sections 13(b)(5) and 14(a) of the Exchange Act, and Rules 13a-14, 13b2-1, 13b2-2, 14a-3, and 14a-9 thereunder; and ordering a $50,000 civil penalty.

The SEC's investigation was conducted and supervised by Kevin Guerrero. The litigation was led by Gregory Miller, and supervised by James Connor and Olivia Choe.

For further information, see Lit. Release No. 24551/August 5, 2019 (announcing filing of complaint).