U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20652 / July 22, 2008
SEC v. One Equity Corp., et al., Case No. C2-08-667 (S.D. Ohio)
SEC Obtains Emergency Relief Against Stock Based Loan Operators; Judge Orders Asset Freeze, Preliminary Injunction, and Appointment of Receiver
The Securities and Exchange Commission today announced that on July 17, U.S. District Judge Edmund A. Sargus, Jr. entered an order freezing assets, preserving records and property, and preliminarily enjoining defendants Michael S. Spillan and Melissa K. Spillan of Gahanna, Ohio, from violating the antifraud provision of the federal securities laws [Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder]. Judge Sargus also ordered the appointment of attorney Frederick L. Ransier as Receiver over defendants One Equity Corporation, Triangle Equities Group, Inc., Victory Management Group, Inc. and Dafcan Finance, Inc. (the One Equity Companies), which are located in Westerville, Ohio. The Commission sued the defendants on July 10 alleging they were operating a fraudulent stock loan program.
The Commission's complaint alleges that, since at least 2004, the Spillans and the One Equity Companies raised approximately $70 million from 125 borrowers by holding themselves out as stock based lenders, underwriters, or administrators. According to the complaint:
Judge Sargus previously entered a temporary restraining order on July 10 prohibiting defendants from making any loans, making any disbursements from business accounts without prior Court approval, paying salaries to the Spillans, and destroying or discarding any relevant financial records.
Borrowers and other interested parties should direct all questions and inquiries to the Receiver to:
Frederick L. Ransier, III
For more information, see Litigation Release No. 20643 (July 11, 2008).