Dennis A. Martin
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19691 / May 8, 2006
Securities and Exchange Commission v. Dennis A. Martin, Civil Action No. 1:06- CV-1078 (NDGA May 5, 2006)
The Securities and Exchange Commission (Commission) announced today that it filed a Complaint For Injunctive and Other Relief (Complaint) in the United States District Court for the Northern District of Georgia to involving the misappropriation of at least $837,000 in a securities fraud by Dennis A. Martin, 36, a resident of Marietta, Georgia. From April 2004 through April 20, 2006, Martin was a registered representative doing business as "First Financial Group," an unincorporated entity and was associated with a registered broker-dealer.
The Complaint alleges that:
From as early as February 2005, Martin recommended to at least five and to as many as 29 customers that they sell securities, generally variable annuities, and/or that they purchase securities. Based on Martin's representations, the customers authorized the transactions; however, Martin did not invest the proceeds as authorized. Instead, Martin submitted forged documents to the variable annuity companies surrendering the contracts and directing those companies to mail the proceeds directly to him. The customers names were forged on the checks and the checks were deposited into a bank account in the name of First Financial Group, a fictitious name under which Martin does business. Additionally, Martin obtained at least one check from a customer for the purpose of purchasing securities. Martin misappropriated those funds. Through his schemes, Martin has obtained at least $837,000 and apparently more than $2.4 million.
The Complaint alleges that Martin violated Section 17(a) of the Securities Act of 1933 (Securities Act), and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder. The Commission seeks: (i) a temporary restraining order; (ii) preliminary and permanent injunctions against future violations; (iii) an accounting and disgorgement of ill-gotten gains plus prejudgment interest; (iv) imposition of civil penalties; (v) an asset freeze; and (vi) an order expediting discovery and preventing the destruction of documents.
The Commission also announces today that the Honorable Timothy C. Batten, United States District Judge for the Northern District of Georgia, entered an order (1) temporarily restraining Martin from violations of the antifraud provisions of the Securities Act and the Exchange Act; (2) requiring Martin to show cause why a preliminary injunction should not be granted; (3) requiring an accounting of all funds received by Martin pursuant to the scheme described in the Complaint; (4) freezing Martin's assets; (5) expediting discovery and prohibiting destruction of documents.
