Discover Capital Holdings Corp., et al.
On July 9, 2003, the SEC filed an emergency action in the United States District Court for the District of Columbia to halt an alleged ongoing fraudulent scheme largely aimed at retirees who were customers of brokerage firms that had gone out of business. According to the complaint, Eli Dinov, his brother Ari Dinov, and David Rubinov (also known as David Rubin), used spam e-mails and misleading, high pressure sales calls to raise more than $1.1 million through the sale of private placement shares of Discover Capital Holdings Corp, a company controlled by the individual defendants, through Discover's wholly-owned broker-dealer subsidiary, Indianapolis Securities, Inc.
On November 19, 2004, the Court entered final judgments against Discover Capital, Indianapolis Securities, and Eli and Ari Dinov, arising from charges that they participated in the fraudulent, unregistered offering of Discover Capital's preferred shares. To settle the matter, the defendants paid over $1 million in disgorgement, penalties and pre-judgment interest.
The Court appointed Nancy Grunberg, Esq. as Distribution Agent. On July 14, 2006, the Court approved a plan to distribute approximately $1 million to defrauded investors. The Distribution Agent has sent checks to all those investors who completed a Proof of Claim Form. If you have not received a check, you should immediately contact Marta Markowska at email@example.com.
The SEC has posted numerous litigation releases. You can find them by visiting the SEC's website and inserting the words "Discover Capital Holdings" in the “Search terms” box under the heading “Search SEC Documents.”