The Diamond Desk Corporation; Adam J. Lowe
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25852/ September 26, 2023
Securities and Exchange Commission v. The Diamond Desk Corporation and Adam J. Lowe, No. 25852 (S.D. Fla. filed Sept. 25, 2023)
SEC Charges Florida Company and its Principal with Operating a Fraudulent Securities Offering Involving Natural Fancy Color Diamonds
Yesterday, the Securities and Exchange Commission charged Coral Springs, Florida company, The Diamond Desk Corporation (“Diamond Desk”) and its sole owner and principal, Adam J. Lowe, alleging that they raised approximately $2.2 million from at least nine investors through a fraudulent investment scheme involving natural fancy color diamonds.
The SEC’s complaint alleges that, from at least February 2018 to February 2019, Lowe, on behalf of Diamond Desk, offered and sold securities in the form of investment contracts in Diamond Desk, and falsely told investors that Diamond Desk would use investor money to acquire parcels of natural fancy color diamonds to be resold at a profit and resulting in investment returns of up to 27% plus the full return of investors’ principal within 3 to 12 months. As alleged, Lowe did not use investor funds solely to purchase natural fancy color diamonds for resale as promised and, instead, misappropriated at least $924,000 of investor funds for his personal expenses and benefit, including to fund his gambling at casinos.
The SEC’s complaint, filed in the U.S. District Court for the Southern District of Florida, charges Diamond Desk and Lowe with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and charges Lowe with control person liability under Section 20(a) of the Exchange Act. The SEC seeks permanent injunctive relief, disgorgement of allegedly ill-gotten gains plus prejudgment interest, civil penalties, and a conduct-based injunction and an officer-and-director bar against Lowe.
The SEC's investigation was conducted by Christine Hernandez with the assistance of supervisory accountant Fernando Torres and supervised by Sean O’Neill and Glenn Gordon in the Miami Regional Office. The SEC’s litigation will be led by Brian Lechich with assistance from Christine Hernandez and supervised by Teresa Verges.