Shawn A. Icely

U.S Securities and Exchange Commission

Litigation Release No. 21705 / October 21, 2010

Securities and Exchange Commission v. Shawn A. Icely, Civil Action No. 8:10-CV-2363-T17-AEP (M.D. Fla.)

On October 21, 2010, the Securities Exchange Commission ("Commission") filed a civil injunctive action against Shawn A. Icely alleging violations of the antifraud provisions of the federal securities laws in connection with his misappropriation of hundreds of thousands of dollars from customers of American Portfolios Financial Services, Inc. while he was employed there as a registered representative.

The Commission's complaint alleges that, from no later than November 2008 through December 2009, Icely fraudulently diverted approximately $625,000 from American Portfolios customer accounts to his company, Icely, Inc. According to the complaint, Icely diverted the money by using wire transfer forms or IRA distribution forms that were forged. The complaint further alleges that to facilitate and otherwise conceal his fraud, Icely told customers that their money was transferred to bank accounts in their name or that the money was being transferred to new accounts at another brokerage firm. The complaint alleges that Icely defrauded at least 11 customers, many of whom had long-standing business and personal relationships with Icely.

The Commission's complaint charges Icely with violating Section 17(a) of the Securities Act of 1993, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10(b) thereunder. The complaint seeks a permanent injunction prohibiting future violations of the securities laws, disgorgement of all ill-gotten gains, and a civil money penalty against Icely.