U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Edward S. Digges; NexstarCommunications, LLC; TMT Equipment Company, LLC; TMT Management Group, LLC; POSA, LLC; POSA TMT, LLC; Televest Communications, LLC; Televest Group, LLC; and Spin Drift, LLC

On February 23, 2006, the SEC obtained permanent injunctions and other relief against Edward S. Digges and several companies he controlled.  The SEC alleged that between April 2003 and February 2006, the defendants orchestrated a ponzi scheme, raising at least $20 million from more than 300 investors.  According to the complaint, Digges offered investments in point-of-sale credit card terminals, which were sold and leased back by two entities Digges controlled.  The SEC alleged that Digges promised investors lease payments amounting to an annual return of 12 percent and to repurchase the terminals for its full purchase price at the end of the leasing term.

To sell the investments, the SEC alleged that Digges falsely told investors their payments were “assured,” in part through a “reserve fund” that purportedly covered the first months lease obligations.  The SEC claimed that in fact there was never any reserve fund.  For more information about the SEC’s action, you can read Litigation Release Nos. 19554 (Feb. 3, 2006) and 19574 (Feb. 23, 2006).

The Court appointed James D. Silver as Receiver over the entity defendants. The Receiver has determined that, in connection with the scheme, Digges misappropriated at least $4.1 million of the proceeds raised, using them to pay his personal expenses, and other expenses of his wife and children. 

For the latest information about the Receivership, you can visit the Receiver’s website.


http://www.sec.gov/divisions/enforce/claims/nexstar.htm


Modified: 06/06/2006