SEC v. Brian G. Elrod and Nova Dean Pack, Case No. 13-CV-02449WYD (D. Colo.). On September 9, 2013, the SEC announced it filed settled fraud charges against Brian G. Elrod in connection with a promissory note offering for which Nova Dean Pack acted as an unregistered broker. According to the SEC, Elrod and Pack raised $2 million from investments in high-yield promissory notes issued by Elrod’s holding company. The SEC alleges that Elrod promised investors annual returns ranging from 12% to 24%. Elrod also told investors that the proceeds from their promissory notes would be used to expand a group of financial services companies owned and managed by Elrod. The SEC alleges that Elrod lied. Rather than use investor money for business purposes, he used the money for himself and family members, and to pay Pack large commissions for referring investors. He also used money to make interest payments back to investors. The promissory note offering was not registered with the SEC, and Pack was not an associated person of a registered broker or dealer when he was involved in the offering. Elrod and Pack have settled without admitting or denying the charges. Elrod agreed to an order enjoining him from future violations of Sections 5 and 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and requiring him to pay disgorgement of $1,720,491 plus prejudgment interest of $295,817, and a civil monetary penalty of $1,720,491. Pack consented to an order enjoining him from future violations of Section 5 of the Securities Act and Section 15(a) of the Exchange Act, and ordering disgorgement of $171,500 plus prejudgment interest of $25,177, but waiving payment and not imposing a
civil penalty based upon his financial condition.
- SEC Charges Microsoft Manager Brian Jorgenson and his Friend Sean Stokke with Insider Trading
- SEC Obtains Emergency Relief against Robert Helms and Janniece Kaelin in Alleged Ponzi Scheme
- SEC Charges Fifth Third Bancorp and its Former CFO Daniel Poston with Fraud for Accounting Practices during the Financial Crisis
- SEC Settles Insider Trading Case against Charles Langston III
- SEC Settles Penny Stock Case Against Curt Kramer for $1.4 Million
Other BraunHagey Blogs