U.S. Securities & Exchange Commission
SEC Seal
Home | Previous Page
U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 22667 / April 5, 2013

Securities and Exchange Commission v. Inofin, Inc., Michael J. Cuomo, Kevin J. Mann, Sr., Melissa George, Thomas Kevin Keough, David Affeldt, and Nancy Keough, Civil Action No. 1:11-CV-10633 (D. Mass., Complaint Filed April 14, 2011)

Final Judgement Entered Against Former Sales Agent of Massachusetts Company

The Securities and Exchange Commission announced today that on April 5, 2013, the U.S. District Court for the District of Massachusetts entered final judgment by consent against David Affeldt, a former sales agent of Massachusetts-based Inofin, Inc., in a civil injunctive action filed by the Commission on April 14, 2011.  Among other things, the judgment orders Affeldt to pay a total of over $200,000 in disgorgement of ill-gotten gains plus pre-judgment interest and a civil penalty. 

The Commission’s complaint alleged that Affeldt promoted the offering and sale of unregistered securities, issued by Inofin, a consumer finance company.  As alleged in the complaint, Inofin through its former executives Michael J. Cuomo of Plymouth, Massachusetts, Kevin Mann, Sr. of Marshfield, Massachusetts and Melissa George of Duxbury, Massachusetts illegally raised at least $110 million from hundreds of investors in 25 states and the District of Columbia through the sale of unregistered notes.  According to the SEC’s complaint, Inofin, along with Cuomo, Mann and George, materially misrepresented how the Company was using investor money and the Company’s financial performance.  Along with Affeldt the SEC charged Thomas K. (Kevin) Keough – alleging that they promoted the offering and sale of Inofin’s unregistered securities.  Keough’s wife Nancy Keough is named in the complaint as a relief defendant for the purposes of recovering proceeds she received as a result of the violations.

The final judgment as to Affeldt imposed a permanent injunction prohibiting him from violating Sections 15(a) of the Securities Exchange Act of 1934 (“Exchange Act”) and Sections 5(a) and 5(c) of the Securities Act of 1933 (“Securities Act”). 

The final judgment also orders Affeldt to pay disgorgement of $147,039.00, representing profits gained as a result of the conduct alleged in the Complaint, together with prejudgment interest thereon in the amount of $12,064.48 for a total of $159,103.48 plus a civil penalty in the amount of $50,000. 

The Commission previously obtained final judgments by consent as to Cuomo and Mann which included permanent injunctions prohibiting Cuomo and Mann from violating Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and Sections 5 and 17(a) of the Securities Act.  The SEC’s action remains pending against Inofin, George, and the Keoughs.

For further information, see Litigation Release No. 21929 (April 14, 2011) and Litigation Release No. 22435 (August 6, 2012).

 

http://www.sec.gov/litigation/litreleases/2013/lr22667.htm


Modified: 04/05/2013