U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23299 / July 6, 2015
Securities and Exchange Commission v. Baldwin et al., Civil Action No. 2:15-cv-00458 (D. UT., Filed June 25, 2015
Securities and Exchange Commission V. Baldwin et al.
The Securities and Exchange Commission ("Commission") filed a civil injunctive action on June 25, 2015, in the United States District Court for the Central Division of Utah (2:15-cv-00458-PMW) relating to the fraudulent offering of securities by Silverleaf Financial, LLC and its sole principal Dwight Shane Baldwin. The Commission's Complaint alleges that from at least June 2010 through late 2011, Baldwin and Silverleaf offered and sold securities in the form of promissory notes and investment contracts, raising at least $8 million from investors in order to purchase two defaulted loans: one collateralized by property in Oviedo, Florida and the other collateralized by the Trailhead Lodge in Steamboat Springs, Colorado.
The Commission's Complaint alleges that in connection with the offer and sale of these securities, Baldwin and Silverleaf made untrue statements regarding material facts, omitted important information and operated a scheme to defraud investors.
The Commission's complaint alleges that Silverleaf and Baldwin violated Section 17(a) of the Securities Act of 1933 ("Securities Act"); Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. The Commission's Complaint is seeking permanent injunctions against future violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.