Brokerage firm, two principals found guilty of stock fraud

In a case brought by the Securities and Exchange Commission, a jury in a federal court in Tampa, Florida, returned a unanimous verdict finding broker-dealer Spartan Securities Group, transfer agent Island Capital Management and two principals of those firms, Carl E. Dilley and Micah J. Eldred, liable for fraud in connection with their roles in the creation of at least 19 public companies that were shams.

The court will determine the remedies to be imposed against Spartan Securities, Island Stock Transfer, Dilley and Eldred in further proceedings. In a release, the SEC said it is seeking permanent injunctions and civil penalties against Spartan Securities, Island Stock Transfer, Dilley and Eldred; penny stock bars against Spartan Securities, Dilley and Eldred; and disgorgement of ill-gotten gains with prejudgment interest against Island Stock Transfer.

The Financial Industry Regulatory Authority Inc. cancelled the securities license of Clearwater, Florida-based Spartan Securities in June 2019.

[More: FBI, SEC warn public about fake brokers and advisers]

Money still pouring into ESG funds

The post Brokerage firm, two principals found guilty of stock fraud appeared first on InvestmentNews.

Andrew is half-human, half-gamer. He’s also a science fiction author writing for BleeBot.

Andrew Vincent
Andrew is half-human, half-gamer. He's also a science fiction author writing for BleeBot.
%d bloggers like this: