SEC Orders Broker to Pay $500,000 to Investors Harmed by Fraudulent Ponzi Schemes
Nov. 25, 2019
File No. 3-15124
November 22, 2019 - The Securities and Exchange Commission announced today that Golden, Colorado resident David F. Bandimere has agreed to settle charges that he violated certain antifraud and registration provisions of the federal securities laws for his role in selling investments in two unlawful Ponzi schemes. To settle the SEC's charges, Bandimere is ordered, among other things, to pay $500,000 and is barred from associating with any broker or dealer.
The SEC's order finds that Bandimere, who was initially charged by the SEC in December 2012, acted as an unregistered broker selling unregistered investments for IV Capital and Universal Consulting Resources (UCR), two Ponzi schemes. Through his direct sales, Brandimere raised more than $9 million from more than 60 retail investors. The order further finds that Bandimere misled potential and current investors by presenting only a one-sided, positive view of the IV Capital and UCR investments while failing to disclose numerous red flags and potentially negative facts relating to those investments. The SEC previously obtained judgments against the principals of IV Capital and UCR, and those individuals were also criminally charged.
The SEC's order finds that Bandimere violated the antifraud provisions of Sections 17(a)(2) and (3) of the Securities Act of 1933 (Securities Act), the broker registration provisions of Section 15 of the Securities Exchange Act of 1934, and the securities registration provisions of Section 5 of the Securities Act. Without admitting or denying the SEC's findings, Bandimere consented to cease and desist from committing or causing further violations of these provisions of the federal securities laws, as well as to be barred from association with any broker or dealer. Bandimere will pay disgorgement of $370,000 and a civil penalty of $130,000. The SEC's order creates a Fair Fund to allow the distribution of these monies to Bandimere's harmed investors.
The SEC's initial investigation was conducted by, among others, John Mulhern and Kerry Matticks of the Denver Regional Office and Jay Scoggins of the SEC's Market Abuse Unit. The litigation was conducted by Terry Miller, Nic Heinke, and Dugan Bliss, under the supervision of Greg Kasper.