SEC v. Shelby Dean Martin, D. Martin Enterprises, Inc. and DM Ventures, LLC

SEC Complaint against Shelby Dean Martin, D. Martin Enterprises, Inc. and DM Ventures, LLC


This SEC complaint was filed to halt an ongoing Ponzi scheme.

The Complaint alleges that Martin told most of his investors that he was going to invest their funds in private companies that he would take public. He told other investors that their money would be used to provide working capital to companies in financial trouble. For some others, he said the money would be used to purchase stock in various companies. In most cases he sold the investors notes with terms of six or twelve months that paid interest rates ranging from 15% to 50%.

According to the complaint, Martin did not invest much of the money. Instead, he diverted substantial investor funds for his personal use and used new investor funds to pay returns to existing investors.

The Complaint alleges that the defendants have violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Complaint also alleges that Martin has violated Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.

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Reference Info:Pleadings | Federal, 4th Circuit, North Carolina | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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