U.S. Securities and Exchange Commission
Litigation Release No. 18132 / May 12, 2003
United States v. David I. Namer, Cr. No. 00-20176-M1 (U.S.D.C., W.D. Tenn.); Securities And Exchange Commission v. David I. Namer, et al., 97 Civ. 2085 (U.S.D.C., S.D.N.Y.) (MBM)
Memphis Financial Advisor David I. Namer Sentenced to Over 29 Years in Prison-One of the Longest White Collar Sentences in History
The Commission announced today that on May 6, 2003, David I. Namer, a financial advisor based in Memphis, Tennessee, was sentenced to a prison term of 29 years and two months. This is one of the longest sentences ever in a white collar case. Namer, 55, was found guilty on August 20, 2002, by a federal jury of 93 counts of conspiracy, securities fraud, mail fraud, wire fraud, money laundering, and tax evasion. The indictment charged that Namer masterminded a multi-faceted fraudulent scheme from 1994 through 1996 involving the sale of approximately $35 million of corporate notes to hundreds of investors located throughout the nation. In addition to the prison sentence, Namer was ordered to forfeit $34.6 million in cash, his house, and shares of stock that he acquired with ill-gotten gains. He was also ordered to serve five years of supervised release and to pay special assessments totaling $6,800. He has been incarcerated since September 28, 2000. The case was prosecuted by the United States Attorney's Office for the Western District of Tennessee.
Through its verdict, the jury found that Namer bribed two securities brokers and an insurance company executive; fraudulently sold approximately $23 million of corporate notes that he claimed were insured when there was in fact no insurance in place; diverted almost $2 million of note proceeds to purchase, for his own personal benefit, a fifty-percent interest in a securities brokerage firm; and evaded federal income taxes on approximately $600,000 in income over three years.
More specifically, as charged in the indictment:
Six of Namer's co-conspirators previously entered guilty pleas and agreed to cooperate with the prosecution: Craig Colwell; Bruce Barbers; Richard Quackenbush; Michael Ploshnick, the former president of Meyers Pollock Robbins; Larry Baresel, Namer's in-house attorney; and Frederick J. Smith, the owner of Associated Insurance Agency in Boston, Massachusetts. These defendants previously received the following sentences: Colwell (one year and one day), Barbers (68 months), Quackenbush (48 months), Ploshnick (40 months), and Baresel (68 months). Smith, who is ill, has not been sentenced yet.
To assist in the investigation and prosecution of the criminal case, the Commission detailed two SEC trial attorneys to the U.S. Attorney's Office in Memphis. The Commission also filed a related civil enforcement action in 1997 against Namer, Meyers Pollock Robbins, Inc., Michael Ploshnick, and others, which was stayed pending the disposition of the criminal case. In its civil case, the Commission obtained a court-ordered freeze of the $1,975,000 that Namer paid towards a purchase of a fifty percent interest in Meyers Pollock Robbins. The Commission expects that those funds, along with additional funds that Namer has forfeited in the criminal case, will be distributed to defrauded investors.
The Commission wishes to express its appreciation to the United States Attorney's Office for the Western District of Tennessee, the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and NASD Regulation, Inc., for their excellent work on this case.