Reset Font to Default Medium Font Larger Font

Welcome to the HEPI Fund Website


IMPORTANT UPDATE

On April 3, 2017, a Supplemental Notice was mailed.  If you received the Supplemental Notice, please note the Claims Bar Date has been extended to May 18, 2017.  If you already filed a Proof of Claim Form in response to the May 29, 2015 original mailing, you DO NOT need to resubmit a new Proof of Claim Form.



If you purchased Health Enhancement Products, Inc. (“HEPI”) common stock during the period of October 31, 2003 through and including May 31, 2004, you may be eligible to share in the distribution of the $1,400,000 fund.

The following is a summary of information presented in more detail in the Notice which you can access by clicking the Notice link on the left. Since this is just a summary, you should read the full Notice for additional details.

Your Legal Rights and Options

Submit a Proof of Claim Form The only way to be considered for payment.
Do Nothing You will not be considered for payment.
Deadline Proof of Claim Forms must be postmarked no later than
August 27, 2015.

Please read this information carefully. If you are an Eligible Claimant, you may qualify for a Distribution Payment from the HEPI Fund. An Eligible Claimant is any of the following individuals and entities, subject to certain exceptions (see Question No. 4 in the Notice): All persons and entities who purchased HEPI common stock during the Covered Period (October 31, 2003 through and including May 31, 2004) and who sustained a loss.


How to Receive a Payment

To qualify for a Distribution Payment, you must file a signed Proof of Claim Form with the Distribution Agent on or before the Claims Bar Date, August 27, 2015.  A Proof of Claim Form is included with the Notice.  If you require additional information or forms, you may obtain a Proof of Claim Form by clicking the "Proof of Claim Form" link on the left.  You may also request them by calling 1-855-460-1530 or you may submit a written request or email to the Distribution Agent.


Details of the Action

On November 20, 2006, the Commission filed a Complaint against the Defendants, Howard R. Baer and Kevin C. Baer, charging them with violations of the anti-fraud provisions of the federal securities laws with respect to HEPI common stock.

Specifically, the Complaint alleged that Defendant Howard R. Baer violated Section 17(a) of the Securities Act of 1933, and Sections 10(b) and 13(b) of the Securities Exchange Act of 1934 (“Exchange Act”), and Rules 10b-5, 12b-20, 13a-1, 13a-11, 13a-13 and 13a-14 thereunder.  The Complaint also alleged that Defendant Kevin C. Baer engaged in acts that aided and abetted the violation of Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder.

The Complaint alleges that the Defendants’ conduct constituted a “fraud on the market,” meaning that their materially false and misleading statements and activities resulted in an artificially high price for HEPI common stock during the Covered Period (October 31, 2003 through and including May 31, 2004).

On November 29, 2006, a Final Judgment was entered against Defendant Howard R. Baer requiring him, inter alia,  to disgorge his ill-gotten gains of $1,349,592.81 and prejudgment interest of $88,734.60, for a total of $1,438,327.41.  From January 10, 2007 through March 24, 2008, payments paid by Defendant Howard R. Baer were deposited into an interest bearing account with the Court Registry Investment System under the case name designation “SEC v. Howard R. Baer, et al., D09AZ – 2:06-CV-2792-01, totaling $1,421,000.  On March 15, 2012, per the Court's Order, the funds were transferred to the Commission where they are currently being held. The HEPI Fund constitutes a Qualified Settlement Fund under Section 468B-a of the Internal Revenue Service, 26 U.S.C. § 468B-1, and related regulations, 26 C.F.R. §§ 1.468B-1 through 1.468B-5.

These funds, together with any interest and income earned thereon, calculated after deductions expended or to be expended for taxes and fees (the “Available Distribution”), will be distributed in accordance with the provisions of the Amended Distribution Plan to the Eligible Claimants as defined in the Notice who file timely and valid Proof of Claim Forms following the procedures set forth in the Notice and on the Proof of Claim Form. 


Further Information

Further information regarding the Action, the Notice and how to file a Proof of Claim Form may be obtained by contacting the Distribution Agent or reading through the Notice and Proof of Claim Form links on the left.

Disclaimer

IMPORTANT: THIS SITE IS NOT OPERATED BY HEALTH ENHANCEMENT PRODUCTS, INC. THIS SETTLEMENT IS SUPERVISED BY THE SEC. THE DISTRIBUTION AGENT HANDLES ALL ASPECTS OF CLAIM PROCESSING. THIS IS THE AUTHORIZED WEBSITE FOR THIS SETTLEMENT. PLEASE DO NOT RELY UPON OTHER SITES THAT SET OUT DIFFERENT AND UNAUTHORIZED INFORMATION.

View the Privacy Policy