U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18719 / May 19, 2004
SECURITIES AND EXCHANGE COMMISSION v. DANIEL D. DYER AND OXBOW CAPITAL PARTNERS, LLC, Civil Action No. CV 03-968 KI (D. Or.)
SEC SETTLES FRAUD CHARGES AGAINST DANIEL D. DYER AND OXBOW CAPITAL PARTNERS, LLC
The Securities and Exchange Commission announced that on May 11, 2004, a federal judge in Portland, Oregon entered a Final Judgment of Permanent Injunction and Other Relief against Daniel D. Dyer, age 49 and a resident of University Place, Washington, and his wholly owned company, Oxbow Capital Partners, LLC ("Oxbow Partners"), based in Tacoma, Washington. Without admitting or denying the allegations in the Commission's complaint, Dyer and Oxbow Partners consented to the entry of the Final Judgment, which permanently enjoins them from future violations of the antifraud and securities registration provisions of the federal securities laws, Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and (2) of the Investment Advisers Act of 1940. Dyer and Oxbow Partners were also ordered to pay disgorgement of $3.96 million, but payment of all but $50,000 was waived and a civil penalty was not assessed based upon the defendants' financial condition.
The Commission's complaint alleged that from November 1998 to August 2000, Dyer and Oxbow Partners aided and abetted a massive Ponzi scheme perpetrated by Capital Consultants, LLC ("CCL"), formerly an investment adviser in Portland, Oregon. The Commission alleged that Dyer and Oxbow Partners helped CCL conceal from its clients the failure of a $160 million loan made by the former investment adviser. Among other things, Dyer and Oxbow Partners purchased the failed loan from CCL and profited from entering into a series of complex transactions with CCL and two borrowers that resulted in new client funds being used to repay clients invested in the failed loan. During the scheme, the defendants knew that CCL made misrepresentations to its clients about Dyer and Oxbow Partners' role in purchasing the failed loan.
The Commission's complaint also charged Dyer and Oxbow Partners with fraud in connection with two securities offerings conducted between April 1999 and November 2000: Oxbow Capital 1999 Fund I, LLC ("Oxbow Fund I") and Washington Motorcycle Partners, LLC ("Washington Partners"). The Commission alleged that the defendants failed to disclose to Oxbow Fund I investors that the fund's first investment would be in the failed CCL loan. The defendants also defrauded Oxbow Fund I by purporting to replace the fund's investment in the failed CCL loan with securities that the defendants did not own. In the unregistered Washington Partners offering, the defendants used offering proceeds to enrich themselves and make payments on the failed CCL loan rather than to purchase stock in a motorcycle company as represented to investors.
For additional information about this matter, see also Litigation Release Numbers 18234 (July 17, 2003), 17973 (Feb. 6, 2003), 17490 (Apr. 25, 2002), 17405 (Mar. 7, 2002), 16995 (May 10, 2001), and 16720 (Sept. 21, 2000).