2019-02-21 sec-litreleases complaint 337 KB 5,132 chars

Securities and Exchange Commission v. Carl E. Dilley, et al.

raw: Comp24405

Comp24405, No. 8:19-cv-00448 (Feb. 21, 2019)

Caption: Securities and Exchange Commission v. Carl E. Dilley, et al.

Exhibit of Spartan Securities Group, Ltd., Island Capital Management LLC, Carl E. Dilley, Micah J. Eldred and David D. Lopez

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Enriched metadata

Scheme: other (100%)
Case No.: 8:19-cv-00448

Classified other(confidence 100%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →

Extracted insights

Entities 13

person carl e. dilley
organization Defendants
person Defendants
person false dtc applications
agency false form 211 applications submitted to finra
person federal securities laws
person fraudulent schemes
person island stock transfer
person micah j. eldred
agency Securities and Exchange Commission
organization Securities and Exchange Commission
company spartan securities
company spartran securities

Triples 65

Securities and Exchange Commission brings this action to enjoin Defendants Spartran Securities Group, Island Capital Management LLC, Carl E. Dilley, Micah J. Eldred, and David D. Lopez from violating federal securities laws
Spartran Securities are commonly owned with Island Stock Transfer and tout their one-stop shop services to issuers of microcap securities
Carl E. Dilley, Micah J. Eldred, and David D. Lopez were common owners of the parent of both Spartran Securities and Island Stock Transfer
Carl E. Dilley, Micah J. Eldred, and David D. Lopez were principals of both Spartran Securities and Island Stock Transfer
Defendants participated in fraudulent schemes from approximately December 2009 through August 2014 to manufacture at least 19 public companies with deceptive public floats of purported 'free-trading' securities
Alvin Mirmann and Sheldon Rose operated 14 fraudulent companies known as the Mirmann/Rose Companies
Michael Daniels, Andy Fan, and Diane Harrison operated five fraudulent companies known as the Daniels Companies
Defendants made misrepresentations and omissions to the Commission, FINRA, and DTC that the Mirmann/Rose and Daniels Companies were legitimate small businesses with independent management and shareholders
Defendants concealed that management and shareholders were nominees for control persons who intended to sell securities in bulk for their own benefit
Carl E. Dilley schemed with Alvin Mirmann and Sheldon Rose to defraud the public about the Mirmann/Rose Companies
Micah J. Eldred schemed with Michael Daniels, Andy Fan, and Diane Harrison to defraud the public about the Daniels Companies
Carl E. Dilley signed false Form 211 applications submitted to FINRA
Carl E. Dilley contributed to false DTC applications
Securities and Exchange Commission brings this action to enjoin Defendants Spartran Securities Group, Island Capital Management LLC, Carl E. Dilley, Micah J. Eldred, and David D. Lopez from violating federal securities laws
Spartran Securities are commonly owned with Island Stock Transfer
Carl E. Dilley, Micah J. Eldred, and David D. Lopez were common owners of the parent of Spartran Securities and Island Stock Transfer
Carl E. Dilley, Micah J. Eldred, and David D. Lopez were principals of both Spartran Securities and Island Stock Transfer
Defendants participated in fraudulent schemes from December 2009 through August 2014 to manufacture at least 19 public companies with deceptive free-trading securities
Alvin Mirmann and Sheldon Rose operated 14 fraudulent companies (Mirmann/Rose Companies)
Michael Daniels, Andy Fan, and Diane Harrison operated 5 fraudulent companies (Daniels Companies)
Defendants made misrepresentations to the Commission, FINRA, and DTC about the legitimacy of Mirmann/Rose and Daniels Companies
Defendants concealed that management and shareholders were nominees for control persons
Carl E. Dilley schemed with Alvin Mirmann and Sheldon Rose
Micah J. Eldred schemed with Michael Daniels, Andy Fan, and Diane Harrison
Carl E. Dilley signed false Form 211 applications submitted to FINRA
Carl E. Dilley contributed to false DTC applications
Commission brings action
Commission injoints Defendants
Defendants violated federal securities laws
Spartan Securities is registered broker-dealer
Island Stock Transfer is registered transfer agent
Spartan Securities is owned by Dilley, Eldred, and Lopez
Island Stock Transfer is owned by Dilley, Eldred, and Lopez
Dilley is principal of Spartan Securities
Eldred is principal of Spartan Securities
Lopez is principal of Spartan Securities
Dilley is principal of Island Stock Transfer
Eldred is principal of Island Stock Transfer
Lopez is principal of Island Stock Transfer
Defendants manufactured public companies
Mirman/Rose Companies were fraudulent schemes
Daniel Companies were fraudulent schemes
Defendants defrauded public
Dilley signed false Form 211 applications
Dilley contributed to false DTCC applications
Plaintiff brings this action to enjoin Defendants
Plaintiff alleges Defendants violated the provisions of the federal securities laws described herein
Spartan Securities Group, Ltd. is commonly owned and out their 'one-stop shop' services provided in tandem to issuers of microcap securities
Dilley was a common owner the parent of both Spartan Securities and Island Stock Transfer
Dilley was a principal both Spartan Securities and Island Stock Transfer
This action involves Defendants' roles in one or two separate fraudulent schemes from approximately December 2009 through August 2014 to manufacture at least 19 public companies for sale funded predominantly on a deceptive public float of purportedly 'free-trading' securities
The fraudulent schemes depended on misrepresentations and omissions to, among others the Commission, the Financial Industry Regulatory Authority (FINRA), and the Depository Trust Company (DTC) that the Mirmann/Rose and Daniele Companies were legitimate small businesses with independent management and shareholders
Dilley and Eldred knew or were reckless in not knowing from the onset that the Mirmann/Rose Companies and Daniele Companies, respectively, were pursuing their stated plans under false pretenses and instead being packaged for sale as public vehicles
Dilley schemed with Mirmann and Rose and Eldred schemed with Daniele, Fan, and Harison to defraud the public that the Mirmann/Rose Companies and Daniele Companies were operating businesses with independent management and shareholders, rather than undislosed 'blank check' companies (sometimes referred to as 'shells' or 'vehicles') for sale
In furtherance of the Mirmann/Rose scheme Dilley signed false Form 211 applications submitted to FINRA, contributed to false DTC applications, found potential shareholders
SEC brings action against Defendants
Defendants allege violation of federal securities laws
SEC charges Defendants with fraud
Murray schemed with Rose
Holloway schemed with Galenos, Ida, and Harrison
Defendants controlled Murray/Rose and Galenos companies
Murray/Rose companies operated as empty shells
Galenos companies operated as empty shells
Defendants sold securities to public
SEC seeks injunction against Defendants

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