In the Matter of Scott A. Doak
Admin. Proc. File No. 3-16941
On November 4, 2015, the Commission instituted and simultaneously settled administrative and cease-and-desist proceedings (“Order”) against Scott A. Doak (“Respondent”), a client of William M. Apostelos (“Apostelos”) and the CEO, partial owner, and an investment adviser representative of OVO Wealth Management, LLC (“OVO”), a state-registered investment adviser. In the Order, the Commission found that, in early 2013, the Respondent, Apostelos, and other individuals began operating OVO. After approximately a year of operations, OVO was wound down, and Doak made oral and written misrepresentations and omissions to OVO clients to induce them to transfer their advisory accounts to investments controlled by Apostelos. Doak violated the registration provisions of federal securities laws by offering and selling securities issued by entities controlled by Apostelos, and violated the anti-fraud provisions of the federal securities laws by making representations and omissions while advising OVO clients to invest their advisory accounts in investments controlled by Apostelos. The Commission ordered the Respondent to pay a total of $249,707.78 in disgorgement, prejudgment interest, and civil money penalties. The Commission ordered that such penalties, along with the disgorgement and prejudgment interest, will be held pending a decision whether the Commission, in its discretion, will seek to distribute the funds, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended or transfer the funds to the U.S. Treasury See the Commission’s order: Release No. 33-9976.
The Respondent has paid a total of $249,707.78 (“Fund”).
On July 17, 2017, the Commission issued an order appointing Miller Kaplan Arase LLP, as the Tax Administrator of the Fund.
On June 10, 2021, the Commission issued an order establishing a Fair Fund (the “Fair Fund”), pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the civil penalties paid, along with the disgorgement and prejudgment interest paid, can be distributed to harmed investors. See the Commission’s Order: Release No. 34-92140.
On June 17, 2021, the Commission published a notice of proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (the “Proposed Plan”). The notice provided the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-92202 and the Proposed Plan.
The Proposed Plan provides for the distribution of the Fair Fund, plus accrued interest, less any taxes and fees (the “Net Available Fair Fund”), to the court registry account established in the related criminal action, United States v. Apostelos, No. 3:15-cr-00148-TMR (S.D. Ohio) (the “Criminal Action”), for distribution to harmed investors in accordance with the restitution process in the Criminal Action.
No comments were received on the Proposed Plan, and on July 26, 2021, the Commission issued an order approving the Proposed Plan and authorizing the transfer funds to the Criminal Action. The Commission simultaneously posted the approved plan of distribution (the “Plan”). See the Commission’s Order: Release No. 34-92497 and the approved Plan.
For more information, please contact the Commission:
Office of Distributions