SEC seeks to reopen case against Renwick Haddow to modify asset freeze

On April 24, 2025, the U.S. Securities and Exchange Commission (SEC) filed a motion in the Southern District of New York seeking to reopen its enforcement action against Renwick Haddow. The goal is to adjust the scope of a nearly eight-year-old asset freeze so that certain foreign real-estate assets may be sold by bankruptcy trustees in the U.K.

Background: 2017 Complaint and Preliminary Injunction

• June 30, 2017: The SEC initiated the civil action by filing a Complaint accusing Haddow of orchestrating two separate securities-fraud schemes—the first beginning in spring 2015—and raising over $37 million from investors in ventures including Bitcoin Store Inc. and Bar Works, Inc.
• August 7, 2017: Judge Lorna G. Schofield granted the SEC a preliminary injunction, which among other remedies imposed an asset freeze requiring Haddow and his agents to “hold and retain within their control and otherwise prevent…any withdrawal, transfer…or other disposal…of any assets, funds, or other property…wherever located.”
• September 10, 2019: The Court entered a bifurcated consent judgment that resolved injunctive relief but reserved monetary relief—i.e., disgorgement and civil penalties—for later determination.
• December 5, 2019: With injunctive issues settled and monetary relief unresolved, the Court directed the Clerk to close the case (without prejudice to the SECs future claims).

Bankruptcy Proceedings and Joint Trustees Position

• July 27, 2016: Nearly eleven months before the SEC Complaint, Haddows U.K. assets entered bankruptcy and vested automatically in jointly appointed trustees under U.K. insolvency law. The trustees now administer a portfolio that includes at least two high-value villas—one in Corfu, Greece, and another in Marrakech, Morocco.
• Trustees‘ Argument: The joint trustees contend (1) that the villas were acquired before Haddow’s earliest fraudulent scheme in spring 2015, (2) that the purchase funds did not derive from investor losses alleged by the SEC, and (3) that properly vested in the bankruptcy estate before the SECs June 2017 Complaint.
• Practical Impasse: The trustees warn that the existing asset-freeze order may block any sale of those villas, hampering the legitimate realization of estate assets for creditor benefit.

The SECs Motion: Carving Out the Villas

In response, the SECs April 24 motion requests a modification of the 2017 asset-freeze order to expressly exclude the Corfu and Marrakech properties. Key points include:

1. Narrow Carve-Out: The SEC proposes language clarifying that “real or personal property” comprising the two specified villas falls outside the freezes ambit.
2. No Harm to Victims: The motion emphasizes that proceeds from any sale would be applied toward restitution for fraud victims, aligning with the SECs remedial objectives.
3. Procedural Posture: Because the case was closed in December 2019, the SEC must first reopen the action before altering any injunction terms—a step the motion formally seeks.

Related Criminal Case and Next Steps

• Criminal Proceedings: Haddow has pleaded guilty in parallel criminal cases filed by the U.S. Attorneys Office for the Southern District of New York. His sentencing hearing is set for June 18, 2025.
• Court Consideration: A hearing date for the SECs reopening motion has not yet been scheduled. If granted, the Court will modify the asset freeze, paving the way for the joint trustees to sell the villas under U.K. bankruptcy supervision.
• Implications: Approval would (a) streamline international asset-recovery efforts, (b) potentially accelerate victim compensation, and (c) exemplify cross-border coordination between U.S. enforcement and U.K. insolvency regimes.

Conclusion

The SEC‘s initiative to revisit an enforcement action filed in 2017 underscores the agency’s continuing commitment to both preserve assets for victim restitution and harmonize its orders with concurrent bankruptcy processes abroad. By carving out the Corfu and Marrakech villas from the asset-freeze scope, the SEC aims to avoid protracted litigation over property sales and ensure that recovered funds flow to defrauded investors without undue delay.