U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22108 / September 29, 2011
Securities and Exchange Commission v. Christopher A. Seeley and Justin G. Dickson, Civil Action No. 2:11-CV-00907-DN (D. Utah)
SEC SEEKS PERMANENT INJUNCTIONS, DISGORGEMENT AND CIVIL PENALTIES FOR UTAH OFFERING FRAUD
The Securities and Exchange Commission announced that, on September 28, 2011, it filed a civil action in the United States District Court for the District of Utah against Christopher A. Seeley, a resident of Herriman, Utah, and Justin G. Dickson, a resident of Salt Lake City, Utah, alleging that both of the Defendants violated the antifraud, securities offering registration and broker-dealer registration provisions of the federal securities laws.
In its Complaint, the Commission alleges that Seeley conducted a fraudulent offering through two entities, AVF, Inc. and AV Funding, LLC (collectively, “Alden View”), and that Dickson conducted a fraudulent offering through AV Funding, LLC. According to the Complaint, from 2006 to 2009, Alden View raised $7.9 million from investors through the sale of promissory notes by representing to investors that Alden View was engaged a sophisticated real-estate lending business. In reality, Alden View funneled the majority of its investors’ funds into two Ponzi schemes that were run by its most significant borrowers. In doing so, Seeley and Dickson misled investors regarding, among other things: Alden View’s primary borrower’s loan and payment history, the security obtained by Alden View from its borrowers, and Alden View’s due diligence and knowledge of how its borrowers were using investor funds.
The Complaint alleges that, based on this conduct, Seeley and Dickson violated Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The Commission seeks permanent injunctions, disgorgement, and civil penalties against Seeley and Dickson.