On May 5, 2021, Maxwell Drever and the Securities and Exchange Commission (“SEC”) agreed to resolve a matter involving certain disclosures made five years ago in an initial 2016 private placement memorandum involving certain early stage financing in connection with the commercial and residential real estate development project at 1401 Elm Street in Dallas, Texas. These disclosures were subsequently amended and restated in 2018 as part of a rescission offer made to those same investors, in which those investors requesting rescission received back some or all principal and interest, as well as in certain cases a continuing investment in the project. In reaching the settlement and agreeing to an administrative resolution, Maxwell Drever did not admit any liability, and corrective disclosures were previously made in materials provided to investors. In addition, Maxwell Drever has cancelled the equity stake in the project that he received in exchange for his re-investment of $9 million in fees which were not specifically detailed in the initial private placement memorandum but were described in subsequent investor updates and the 2018 memorandum to investors.
Maxwell Drever is pleased to put this regulatory matter behind him, especially at a time when the 1401 Elm project is performing well and has continued to move forward toward completion even in the midst of a pandemic.
The Drever family continues to have a material investment in the project, and is committed to providing additional returns to investors as the project nears completion