0001422224-12-000009.txt : 20120328 0001422224-12-000009.hdr.sgml : 20120328 20120328101407 ACCESSION NUMBER: 0001422224-12-000009 CONFORMED SUBMISSION TYPE: 4 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20120223 FILED AS OF DATE: 20120328 DATE AS OF CHANGE: 20120328 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: ROSS STANTON E CENTRAL INDEX KEY: 0001008241 FILING VALUES: FORM TYPE: 4 SEC ACT: 1934 Act SEC FILE NUMBER: 001-33899 FILM NUMBER: 12719083 MAIL ADDRESS: STREET 1: 211 WEST 14TH STREET CITY: CHANUTE STATE: KS ZIP: 66720 ISSUER: COMPANY DATA: COMPANY CONFORMED NAME: DIGITAL ALLY INC CENTRAL INDEX KEY: 0001342958 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 200064269 FISCAL YEAR END: 1231 BUSINESS ADDRESS: STREET 1: 7311 W 130TH ST STREET 2: STE 170 CITY: OVERLAND PARK STATE: KS ZIP: 66213 BUSINESS PHONE: 913-232-5349 MAIL ADDRESS: STREET 1: 7311 W 130TH ST STREET 2: STE 170 CITY: OVERLAND PARK STATE: KS ZIP: 66213 4 1 primary_doc.xml PRIMARY DOCUMENT X0305 4 2012-02-23 0 0001342958 DIGITAL ALLY INC DGLY 0001008241 ROSS STANTON E 8000 WEST 110TH STREET SUITE 200 OVERLAND PARK KS 66210 1 1 0 0 CEO & President Common stock 2012-02-23 4 S 0 91600 0 D 638346 D Common stock 2012-02-23 4 S 0 555000 0 D 83346 D Common stock 2012-02-23 4 S 0 2185 0 D 81161 D Employee Stock Option (right to buy) 2.15 2012-02-23 4 J 0 303488 0 D 2006-09-25 2011-09-25 Common stock 303488 1168823 D Mr. Ross did not initiate the sales reported. He had pledged 91,600 shares of his common stock for a margin account at a stock brokerage firm. The firm and/or its accounts were subsequently taken over by a third party. At some point, Mr. Ross learned that such third party had liquidated these shares to satisfy, in whole or in part, the margin debt. Mr. Ross is unable to confirm dates, prices or amount of any sale transactions by such third party and has used the date noted as the transaction date for purposes of this Report. Mr. Ross did not initiate the sales reported. He had pledged approximately 555,000 shares of his common stock as collateral for a personal loan. In 2011 the bank notified Mr. Ross that it intended to sell all or part of the pledged shares to help satisfy his obligation to it and sold shares, which Mr. Ross previously reported on Form 4's according to the information that the bank supplied to him. Mr. Ross contested the bank's actions in court. Effective February 23, 2012, he and the bank reached a settlement under which the bank retained the balance of the unsold pledged shares it then held in partial satisfaction of the debt. No specific value has been assigned to the shares in the settlement agreement. The Digital Ally, Inc. 401K Plan & Trust holds shares for the benefit of Mr. Ross. The number of shares held for the benefit of Mr. Ross was adjusted by 2,185 shares to 11,957 as of December 31, 2011. This adjustment was the result of a reallocation of shares within the Plan pursuant to applicable rules and regulations. A total of 303,488 options previously granted to Mr. Ross under the 2006 Digital Ally, Inc. Stock Option and Restricted Stock Plan expired unexercised on September 25,2011. Stanton E. Ross 2012-03-28