California Businessman Daniel Nase Stole Investor Funds and Tried to Conceal It
On March 11, 2016 the Securities and Exchange Commission (SEC) announced fraud charges against California businessman Daniel Nase, accusing him of stealing investor assets and then trying to cover it up once the SEC caught onto his scheme.
The SEC alleges that Nase, through his real estate company BIC Real Estate Development Corporation, stole money from investors in an unregistered offering of BIC common stock, using funds for such personal expenses as student loans, clothes, and vacations. Nase tried to cover up his misappropriation after learning of the SEC’s investigation by investing stolen assets back into the company to make it appear he was increasing his equity stake when in reality it wasn’t his money from the start. With the money that he did use to purchase the real estate and promissory notes as promised to investors, Nase improperly titled most of the properties in his name or his wife’s name or their family trust rather than BIC.
Nase was not registered with the SEC or any state regulator to sell investments.
The SEC’s complaint filed in U.S. District Court for the Eastern District of California charges Nase and BIC with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 5(a) and (c) and 17(a) of the Securities Act of 1933. The complaint also names Margarita Nase and BIC Solo 401k Trust as relief defendants. The complaint seeks emergency relief in the form of a temporary restraining order, asset freeze and preliminary injunction. It also seeks disgorgement of ill-gotten gains plus prejudgment interest and penalties as well as permanent injunctions and other relief against Nase and BIC.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute legal advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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Brenda Hamilton, Securities Attorney
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