U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19704 / May 19, 2006
Securities and Exchange Commission v. Dennis A. Martin, Civil Action No. 1:06- CV-1078-TCB (NDGA)
The Securities and Exchange Commission announced that on May 18, 2006, the Honorable Timothy C. Batten, Sr., United States District Judge for the Northern District of Georgia, entered an order of preliminary injunction and other relief as to defendant Dennis A. Martin. The order restrained and enjoined the defendant from future violations of 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 order also froze the defendant's assets, and required an accounting of all funds the defendant received pursuant to the scheme described in the Commission's Complaint.
The Complaint alleged that from as early as February 2005, Martin recommended to at least five and to as many as 29 customers that they sell or purchase securities, generally variable annuities. The Complaint alleged that the customers authorized the transactions based on Martin's representations, but Martin did not invest the proceeds as authorized. Martin instead submitted forged documents to the variable annuity companies surrendering the contracts and directing those companies to mail the proceeds directly to him. The customers names were forged on the checks and the checks were deposited into a bank account in the name of First Financial Group, a fictitious name under which Martin does business. Martin also obtained at least one check from a customer for the purpose of purchasing securities. Martin misappropriated those funds. Through his schemes, Martin has obtained at least $837,000 and apparently more than $2.4 million.
See also: L.R. No. 19691 (May 8, 2006).