U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20716 / September 15, 2008
SEC v. One Equity Corporation., et al., U.S. District Court for the Southern District of Ohio, No. 08-CV-667
SEC Obtains Injunctions Against Michael S. Spillan and Melissa K. Spillan in Fraudulent Stock Based Loan Action
On September 11, 2008, Judge Edmund A. Sargus, Jr. of the United States District Court for the Southern District of Ohio permanently enjoined Michael S. Spillan and his wife, Melissa K. Spillan, from future violations of the antifraud provisions of the Securities Exchange Act of 1934. The Spillans are former principals of One Equity Corporation, Triangle Equities Group, Inc., Victory Management Group, Inc. and Dafcan Finance, Inc. (the One Equity Companies). The Court shall set the amount of disgorgement and civil penalties owed by the Spillans at a future date upon motion of the Commission. The Spillans consented to the entry of the judgments without admitting or denying the allegations in the Commission's complaint.
The Commission's complaint, filed on July 10, 2008, alleges that, since at least 2004, the Spillans and the One Equity Companies raised approximately $70 million from 125 borrowers by holding themselves out as stock based lenders, underwriters or administrators. On July 17, 2008, the Court entered preliminarily injunctions against Michael and Melissa Spillan and appointed a receiver over the One Equity Companies. On August 25, the Court expanded the receiver's authority to include the Spillans' personal bank accounts.