U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23487/March 11, 2016
Securities and Exchange Commission v. BIC Real Estate Development Corp. et al., Civil Action No. 1:16-at-00185 (E.D. Cal., filed March 11, 2016)
SEC: California Businessman Stole Investor Funds and Attempted Cover-Up
The Securities and Exchange Commission today announced fraud charges against a California businessman accused of stealing investor assets and then trying to cover it up once the SEC caught onto his scheme.
The SEC alleges that Daniel R. Nase through his Bakersfield, Calif.-company BIC Real Estate Development Corporation stole money from investors in an unregistered offering of BIC common stock, using funds for such personal expenses as student loans, clothes, and vacations. Nase tried to cover up his misappropriation after learning of the SEC's investigation by investing stolen assets back into the company to make it appear he was increasing his equity stake when in reality it wasn't his money from the start. With the money that he did use to purchase the real estate and promissory notes as promised to investors, Nase improperly titled most of the properties in his name or his wife's name or their family trust rather than BIC.
Nase was not registered with the SEC or any state regulator to sell investments. Investors can quickly and easily check whether people selling investments are registered by using the SEC's investor.gov website.
The SEC's complaint filed in U.S. District Court for the Eastern District of California charges Nase and BIC with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 5(a) and (c) and 17(a) of the Securities Act of 1933.The complaint also names Margarita Nase and BIC Solo 401k Trust as relief defendants. The complaint seeks emergency relief in the form of a temporary restraining order, asset freeze and preliminary injunction. It also seeks disgorgement of ill-gotten gains plus prejudgment interest and penalties as well as permanent injunctions and other relief against Nase and BIC.