Kenneth Dachman Sentenced to Lengthy Prison Term in Investment Fund Scheme

SEC v. Kenneth A, Dachman, et al., Case No 1:12-cv-00821 (N.D. Illinois).  On January 22, 2013, the SEC announced that in a parallel criminal action brought by the Unites States Attorney’s Office, Kenneth A Dachman was sentenced to 120 months in prison and ordered to pay more than $4 million in restitution.  Dachman was criminally charged for raising more than $4 million from investors for his sleep disorder businesses, Central Sleep Diagnostics and Advanced Sleep Devices.  He obtained money from investors by misrepresenting the use of their funds, the expected investment returns and risks involved in the investments, and the financial condition of the businesses.  In February 2012, the SEC filed a civil enforcement action against Dachman based on the same events.  The SEC’s action was while the criminal case was pending.

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