U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23908 / August 16, 2017
Securities and Exchange Commission v. Michael Quigley, et al., No. 17-cv-4695 (E.D.N.Y. filed Aug. 10, 2017)
SEC Charges Two Brothers With Conducting an Offering Fraud
The Securities and Exchange Commission has charged two brothers with conducting an offering fraud.
According to the SEC's complaint, Michael and Brian Quigley convinced overseas investors to send money to U.S. bank accounts for purported investments in various securities, including well-known issuers, investment funds and penny stock companies, and claimed to be associated with entities that did not in fact exist, including fictional broker-dealers. The SEC alleges that the Quigleys did not make any investments with the money, and instead simply stole the investors' funds. According to the complaint, they used various methods to continue to defraud investors after their initial investments, including sending phony account statements, using a fake firm name similar to the name of an existing firm, making up numerous phony excuses for their failure to return funds, manufacturing stock certificates, falsely claiming on various occasions to be helping the investor recover previous losses, and requiring payment of bogus transfer agent fees purportedly to obtain the investors' stock certificates.
The SEC's complaint, filed in federal court in Brooklyn, N.Y. on August 10, 2017, charges Michael Quigley and Brian Quigley with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The SEC seeks permanent injunctions and penny stock bars against both Quigley brothers, and additionally seeks civil penalties and disgorgement plus interest from Michael Quigley.