SEC v. Daniel Dirk Coddington; Jesse W. Erwin; Merlyn C. "Curt" Geisler; Marshall D. Gunn; Lewis P. Malouf; Golden Summit Investors Group, Ltd., et al., No. LR-22889, District of Colorado (Dec. 13, 2013) — Press Release
raw: Daniel Dirk Coddington, et al.
Daniel Dirk Coddington, et al., No. 1:13-cv-3363 (Dec. 13, 2013)
summary
Daniel D. Coddington and 12 others were charged by the SEC with a $31 million Prime Bank fraud scheme from 2010 to 2012, misappropriating investor funds and violating antifraud provisions, security registration provisions, and acting as unregistered broker-dealers.
paragraph
The SEC charged seven individuals and six entities with a Prime Bank fraud scheme that raised over $31 million from 2010 to 2012. The defendants falsely claimed access to high-yield CMO-based investment programs offering over 250% annual returns, but instead misappropriated investor funds for personal use. The SEC alleged violations of antifraud provisions, security registration provisions, and acting as unregistered broker-dealers, seeking permanent injunctions, disgorgement, and penalties.
narrative
The U.S. Securities and Exchange Commission charged seven individuals and six entities, led by Daniel D. Coddington, in a $31 million Prime Bank fraud scheme from 2010 to 2012. The defendants falsely claimed access to high-yield CMO-based investment programs offering over 250% annual returns, but instead misappropriated investor funds for personal use. The SEC alleged violations of antifraud provisions, including Section 17(a) of the Securities Act and Section 10(b) and Rule 10b-5 of the Exchange Act, as well as unregistered securities offerings and unregistered broker-dealer activity. The Commission also accused four additional parties of aiding and abetting the fraud. The SEC sought permanent injunctions, disgorgement with prejudgment interest, civil penalties, and recovery from relief defendants who received illicit proceeds. The investigation, conducted with assistance from the FBI and FINRA, was led by the Denver Regional Office. The outcome of the case is not specified in the document as it appears to be an initial complaint filing.
Classified advance-fee(confidence 80%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Parties
Securities and Exchange CommissionDaniel Dirk CoddingtonJesse W. ErwinMerlyn C. "Curt" GeislerMarshall D. GunnLewis P. MaloufGolden Summit Investors Group, Ltd.Extreme Capital LtdFidelity Asset Service Corp.Geisco FNF, LLCSouthCom Management, LLCSeth A. LeytonMichael B. ColumbiaStonerock Capital Group LLC
Keywords
coddingtongolden summitsecuritiessecurities exchangealleges coddingtonextreme capitalallegescapitaldaniel dirkdirk coddingtonexchange commissiongeisler gunngunn maloufdanielexchange
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 1
- $31.00M $31 million $10M–$100M
Entities 2
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
Triples 2
- Securities and Exchange Commission filed a civil injunctive action against Daniel D. Coddington, Golden Summit Investors Group, Ltd., and others for a Prime Bank fraud
- Daniel D. Coddington carried out a Prime Bank fraud with six entities and six other individuals
PDF (from attached: pdf)
Text layers
Extracted body text (3,195c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 22889 / December 13, 2013 Securities and Exchange Commission v. Daniel Dirk Coddington, et al., Civil Action No. 1:13-cv-3363 (D. Colo., filed December 12, 2013) SEC Charges Seven Individuals and Six Entities Involved in Prime Bank Fraud The Securities and Exchange Commission filed a civil injunctive action on December 12, 2013, in the United States District Court for the District of Colorado against Colorado resident Daniel D. Coddington, his company Golden Summit Investors Group, Ltd., and others who carried out a Prime Bank Fraud that raised more than $31 million from 2010 through 2012. The SEC's complaint alleges that Coddington, Jesse W. Erwin, Merlyn C. "Curt" Geisler, Marshall D. Gunn, Lewis P. Malouf, Golden Summit, Extreme Capital Ltd, Fidelity Asset Service Corp., Geisco FNF, LLC and SouthCom Management, LLC claimed to have access to special programs that would provide annual returns of more than 250 percent by obtaining loans against a financial instrument known as a collateralized mortgage obligation, or CMO, and then investing the loan proceeds in a purported CMO trading program. The complaint alleges that the above individuals and entities never obtained any loans against CMOs or placed investor funds in a CMO trading program, but instead misappropriated investor funds for their own use. The complaint also alleges that Seth A. Leyton, Michael B. Columbia and Stonerock Capital Group LLC aided and abetted the fraud by selling CMOs held for the benefit of investors and funneling those proceeds back to Coddington. The SEC's complaint alleges that Coddington, Erwin, Geisler, Gunn, Malouf, Golden Summit, Extreme Capital, Fidelity Asset, Geisco and SouthCom violated the antifraud provisions of the securities laws in Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder; and that Coddington, Erwin, Columbia, Leyton, and Stonerock Capital also aided and abetted these violations. The complaint also alleges that Coddington, Geisler, Gunn, Malouf, Extreme Capital, Geisco, Golden Summit, and SouthCom violated the security registration provisions of the securities laws in Sections 5(a) and (c) of the Securities Act. Also, the complaint alleges that Coddington, Geisler, Gunn, Malouf, Extreme Capital, Geisco, Golden Summit, and SouthCom violated Section 15(a) of the Exchange Act by acting as unregistered broker-dealers. The SEC's complaint seeks permanent injunctions, disgorgement plus prejudgment interest, third-tier penalties, and other relief against all of the defendants. Additionally, the complaint seeks disgorgement plus prejudgment interest from relief defendants Daniel S. "Scott" Coddington, Coddington Family Trust, Joanna I. Columbia, Vincent G. Farris, and Vincent G. Farris Co., L.P.A. The SEC's investigation was conducted in the Denver Regional Office by John C. Martin, Kerry M. Matticks and James A. Scoggins. Leslie J. Hughes will lead the SEC's litigation. The SEC acknowledges the assistance and cooperation of the Federal Bureau of Investigation and the Financial Industry Regulatory Authority. SEC Complaint
OCR text (3,195c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 22889 / December 13, 2013 Securities and Exchange Commission v. Daniel Dirk Coddington, et al., Civil Action No. 1:13-cv-3363 (D. Colo., filed December 12, 2013) SEC Charges Seven Individuals and Six Entities Involved in Prime Bank Fraud The Securities and Exchange Commission filed a civil injunctive action on December 12, 2013, in the United States District Court for the District of Colorado against Colorado resident Daniel D. Coddington, his company Golden Summit Investors Group, Ltd., and others who carried out a Prime Bank Fraud that raised more than $31 million from 2010 through 2012. The SEC's complaint alleges that Coddington, Jesse W. Erwin, Merlyn C. "Curt" Geisler, Marshall D. Gunn, Lewis P. Malouf, Golden Summit, Extreme Capital Ltd, Fidelity Asset Service Corp., Geisco FNF, LLC and SouthCom Management, LLC claimed to have access to special programs that would provide annual returns of more than 250 percent by obtaining loans against a financial instrument known as a collateralized mortgage obligation, or CMO, and then investing the loan proceeds in a purported CMO trading program. The complaint alleges that the above individuals and entities never obtained any loans against CMOs or placed investor funds in a CMO trading program, but instead misappropriated investor funds for their own use. The complaint also alleges that Seth A. Leyton, Michael B. Columbia and Stonerock Capital Group LLC aided and abetted the fraud by selling CMOs held for the benefit of investors and funneling those proceeds back to Coddington. The SEC's complaint alleges that Coddington, Erwin, Geisler, Gunn, Malouf, Golden Summit, Extreme Capital, Fidelity Asset, Geisco and SouthCom violated the antifraud provisions of the securities laws in Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder; and that Coddington, Erwin, Columbia, Leyton, and Stonerock Capital also aided and abetted these violations. The complaint also alleges that Coddington, Geisler, Gunn, Malouf, Extreme Capital, Geisco, Golden Summit, and SouthCom violated the security registration provisions of the securities laws in Sections 5(a) and (c) of the Securities Act. Also, the complaint alleges that Coddington, Geisler, Gunn, Malouf, Extreme Capital, Geisco, Golden Summit, and SouthCom violated Section 15(a) of the Exchange Act by acting as unregistered broker-dealers. The SEC's complaint seeks permanent injunctions, disgorgement plus prejudgment interest, third-tier penalties, and other relief against all of the defendants. Additionally, the complaint seeks disgorgement plus prejudgment interest from relief defendants Daniel S. "Scott" Coddington, Coddington Family Trust, Joanna I. Columbia, Vincent G. Farris, and Vincent G. Farris Co., L.P.A. The SEC's investigation was conducted in the Denver Regional Office by John C. Martin, Kerry M. Matticks and James A. Scoggins. Leslie J. Hughes will lead the SEC's litigation. The SEC acknowledges the assistance and cooperation of the Federal Bureau of Investigation and the Financial Industry Regulatory Authority. SEC Complaint