2016-11-08 sec-litreleases litigation_release 66 KB 2,775 chars

SEC v. Jeffrey D. Smith; Joseph Carswell; and Michael W. Fullard, No. LR-23685, Northern District of Georgia (Nov. 8, 2016) — Press Release

raw: Jeffrey D. Smith d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc., Joseph Carswell d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc., and Michael W. Fullard

Jeffrey D. Smith d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc., Joseph Carswell d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc., and Michael W. Fullard, No. 1:16-CV-4171 (Nov. 8, 2016)

Caption
Securities and Exchange Commission v. Jeffrey D. Smith d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc., Joseph Carswell d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc., and Michael W. Fullard
Source PDF JSON
summary

Jeffrey D

paragraph

Jeffrey D. Smith, Joseph Carswell, and Michael W. Fullard are accused of conducting a "prime bank" style investment fraud scheme, defrauding investors out of over $700,000. The alleged fraud involved promising investors high returns from "medium term notes," "bank guarantees," and "standby letters of credits" in exchange for fees ranging from $100,000 to $250,000. Smith and Carswell are charged with violating antifraud provisions of the federal securities laws, while all three are charged with acting as unregistered broker-dealers. The outcome is a civil injunctive action seeking permanent injunctions, civil penalties, disgorgement, and other relief.

narrative

Jeffrey D. Smith, Joseph Carswell, and Michael W. Fullard are accused of conducting a "prime bank" style investment fraud scheme, defrauding investors out of over $700,000. The alleged fraud involved promising investors high returns from "medium term notes," "bank guarantees," and "standby letters of credits" in exchange for fees ranging from $100,000 to $250,000. Smith and Carswell are charged with violating antifraud provisions of the federal securities laws, while all three are charged with acting as unregistered broker-dealers. The outcome is a civil injunctive action seeking permanent injunctions, civil penalties, disgorgement, and other relief. The U.S. Securities and Exchange Commission charged Jeffrey D. Smith and Joseph Carswell of Georgia, along with Michael W. Fullard of South Carolina, with operating a “prime bank” investment fraud scheme that defrauded investors of over $700,000. The defendants falsely claimed they could procure high-value financial instruments like bank guarantees and medium-term notes, promising risk-free weekly returns of up to 35%, when in reality they used investor funds for personal gain within hours of receipt. Smith and Carswell were charged with securities fraud under Section 10(b) and Rule 10b-5, as well as Section 17(a) of the Securities Act, while all three were accused of acting as unregistered broker-dealers under Section 15(a) of the Exchange Act. The SEC seeks permanent injunctions, civil penalties, disgorgement with prejudgment interest, and other remedies, warning the public that all “prime bank” schemes are fraudulent. The U.S. Securities and Exchange Commission charged Jeffrey D. Smith and Joseph Carswell of Georgia, along with Michael W. Fullard of South Carolina, with operating a “prime bank” investment fraud scheme that defrauded investors of over $700,000. The defendants falsely claimed they could procure high-value financial instruments like bank guarantees and standby letters of credit, promising risk-free weekly returns of up to 35% through “monetization,” when in reality they diverted investor funds to themselves within hours of receipt. Smith and Carswell were charged with securities fraud under Section 10(b) and Rule 10b-5, as well as Section 17(a) of the Securities Act, while all three were accused of acting as unregistered broker-dealers in violation of Section 15(a) of the Exchange Act. The SEC seeks permanent injunctions, civil penalties, disgorgement with prejudgment interest, and other remedies, warning the public that all “prime bank” schemes are fraudulent.

Enriched metadata

Scheme
advance-fee (90%)
Court
Northern District of Georgia
Case No.
1:16-CV-4171
Outcome
charged
Entity
Jeffrey D. Smith d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc.
Classified advance-fee(confidence 90%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Statutes
Section 10(b) of the Securities Exchange ActSection 17(a) of the Securities ActRule 10b-5
Parties
Securities and Exchange CommissionJeffrey D. Smith d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc.Joseph Carswell d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc.Michael W. FullardJeffrey D. SmithJoseph Carswell
Keywords
capitalatlanta capitalcapital fundingsmithcarswellsmith carswellexchangejeffrey smithjoseph carswellmichael fullardsecurities exchangeprime banksecuritiesatlantallc

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 3
  • $700K $700,000 $100K–$1M
  • $250K $250,000 $100K–$1M
  • $100 $100 <$10K
Entities 2
  • person joseph carswell
  • person michael w. fullard
Triples 12
  • U.S. SECURITIES AND EXCHANGE COMMISSION filed Securities and Exchange Commission v. Jeffrey D. Smith d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc., Joseph Carswell d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc., and Michael W. Fullard
  • Jeffrey D. Smith was charged with securities fraud through unregistered soliciting entities under Atlanta Capital LLC and Capital Funding, Inc.
  • Joseph Carswell was charged with securities fraud through unregistered soliciting entities under Atlanta Capital LLC and Capital Funding, Inc.
  • Michael W. Fullard was charged with securities fraud through unregistered soliciting entities under Atlanta Capital LLC and Capital Funding, Inc.
  • U.S. Securities and Exchange Commission filed suit against Jeffrey D. Smith, Joseph Carswell, and Michael W. Fullard for securities fraud on November 8, 2016
  • Jeffrey D. Smith charged Securities and Exchange Commission
  • Joseph Carswell charged Securities and Exchange Commission
  • Michael W. Fullard charged Securities and Exchange Commission
  • U.S. Securities and Exchange Commission filed Litigation Release No. 23685
  • Jeffrey D. Smith operated Atlanta Capital LLC
  • Joseph Carswell operated Atlanta Capital LLC
  • Michael W. Fullard involved Capital Funding, Inc.
PDF (from attached: complaint)
Plaintiff, Securities and Exchange Commission (the “Commission”), files its · Source
Text layers
Extracted body text (2,775c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23685 / November 8, 2016 Securities and Exchange Commission v. Jeffrey D. Smith d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc., Joseph Carswell d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc., and Michael W. Fullard, Civil Action No. 1:16-CV-4171- CAP (N.D. Ga., filed Nov. 8, 2016) SEC Charges Georgia and South Carolina Residents with Conducting "Prime Bank" Style Fraud Scheme The Securities and Exchange Commission ("Commission") filed a civil injunctive action today in the United States District Court for the Northern District of Georgia against three individuals for their roles in operating a "prime bank" style investment fraud scheme. The Commission's complaint alleges that Jeffrey D. Smith, of Lithonia, Georgia, and Joseph Carswell, of Marietta, Georgia, defrauded multiple investors out of more than $700,000 by representing to victims that they could procure "medium term notes," "bank guarantees," and "standby letters of credits" worth millions of dollars from reputable banks in exchange for smaller fees ranging between $100,00 and $250,000. Investors were then allegedly told the proceeds from these purported financial instruments would be "monetized" and traded in a manner that would produce returns as high as 35% per week. Smith and Carswell allegedly told investors these transactions were "risk free" and guaranteed. Michael W. Fullard, of Myrtle Beach, South Carolina, is alleged to have acted as a "finder," referring a victim investor to Smith and Carswell in exchange for a fee. The Commission's complaint further alleges that rather than use investor funds to obtain the promised financial instruments, Smith, Carswell and Fullard almost immediately disbursed the investors' funds to themselves, in some cases just hours after they were received. The Commission's complaint charges Smith and Carswell with violations of the antifraud provisions of the federal securities laws under Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933. Smith, Carswell, and Fullard are also charged with acting as unregistered broker-dealers in violation of Section 15(a) of the Exchange Act. The Commission's action seeks permanent injunctions, civil penalties, disgorgement plus prejudgment interest, and other relief. The Commission appreciates the significant assistance provided by the Securities Division of the Georgia Secretary of State's Office. Investors are cautioned that all "prime bank" investment programs are fraudulent. More information regarding "prime bank" schemes can be found at:https://www.sec.gov/oiea/investor-alerts-bulletins/ia_primebankscam.html SEC Complaint
OCR text (2,775c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 23685 / November 8, 2016 Securities and Exchange Commission v. Jeffrey D. Smith d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc., Joseph Carswell d/b/a Atlanta Capital LLC a/d/b/a Capital Funding, Inc., and Michael W. Fullard, Civil Action No. 1:16-CV-4171- CAP (N.D. Ga., filed Nov. 8, 2016) SEC Charges Georgia and South Carolina Residents with Conducting "Prime Bank" Style Fraud Scheme The Securities and Exchange Commission ("Commission") filed a civil injunctive action today in the United States District Court for the Northern District of Georgia against three individuals for their roles in operating a "prime bank" style investment fraud scheme. The Commission's complaint alleges that Jeffrey D. Smith, of Lithonia, Georgia, and Joseph Carswell, of Marietta, Georgia, defrauded multiple investors out of more than $700,000 by representing to victims that they could procure "medium term notes," "bank guarantees," and "standby letters of credits" worth millions of dollars from reputable banks in exchange for smaller fees ranging between $100,00 and $250,000. Investors were then allegedly told the proceeds from these purported financial instruments would be "monetized" and traded in a manner that would produce returns as high as 35% per week. Smith and Carswell allegedly told investors these transactions were "risk free" and guaranteed. Michael W. Fullard, of Myrtle Beach, South Carolina, is alleged to have acted as a "finder," referring a victim investor to Smith and Carswell in exchange for a fee. The Commission's complaint further alleges that rather than use investor funds to obtain the promised financial instruments, Smith, Carswell and Fullard almost immediately disbursed the investors' funds to themselves, in some cases just hours after they were received. The Commission's complaint charges Smith and Carswell with violations of the antifraud provisions of the federal securities laws under Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933. Smith, Carswell, and Fullard are also charged with acting as unregistered broker-dealers in violation of Section 15(a) of the Exchange Act. The Commission's action seeks permanent injunctions, civil penalties, disgorgement plus prejudgment interest, and other relief. The Commission appreciates the significant assistance provided by the Securities Division of the Georgia Secretary of State's Office. Investors are cautioned that all "prime bank" investment programs are fraudulent. More information regarding "prime bank" schemes can be found at:https://www.sec.gov/oiea/investor-alerts-bulletins/ia_primebankscam.html SEC Complaint

Related documents (1)