74 Fortress Financial Group, Inc. - LIABILITIES The Case In 2001, Jeffrey Richie was the President and CEO of a new organization, Fortress Financial Group, Inc. Fortress was in the business of providing employee retirement benefits packages. Prior to opening the doors of this new organization, Richie sold the "idea" of his company to 85 investors, offering shares of Preferred Stock and pulling in a total of $2.9 million. Richie promised not to spend any of the stock proceeds until Fortress raised an additional $2 million; but he did not honor that promise. Dollars $500,000,000 $300,000,000 $100,000,000 $(100,000,000)-Projection Actual Revenues Marshall and Bolt-Lee 2001 $26,000,000 $298,000 2002 $295,000,000 $32,000 2003 $564,000,000 $104,000 The shares of stock sold to investors were not registered with the SEC. Fortress violated the SEC rules required to sell unregistered shares of stock, as Fortress did not provide investors with an audited balance sheet or other financial information required for unregis