Sean Nathan Healy, Defendant, and Shalese Rania Healy and Sand Dollar Investing Partners, LLC, Relief Defendants
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21127 / July 14, 2009
Securities and Exchange Commission v. Sean Nathan Healy, Defendant, and Shalese Rania Healy and Sand Dollar Investing Partners, LLC, Relief Defendants, Civil Action No. 1:09-CV-01330-CCC (M.D. Pa.)
SEC Freezes Assets of Florida Con-Man Stealing Investor Funds for Luxury Purchases
The Securities and Exchange Commission today announced fraud charges and an asset freeze against a Weston, Fla., resident who stole more than $15 million in investor funds to purchase a multi-million dollar home, luxury vehicles, and millions of dollars in jewelry and home furnishings.
The SEC alleges that Sean Nathan Healy promised investors that he would use their money to trade in securities and commodities futures on their behalf. Despite repeated assurances that his purported trading was earning excellent returns, Healy did not invest any of the money he received in securities or commodities futures and instead made personal purchases as well as Ponzi-like payments to investors he defrauded.
According to the SEC's complaint, filed in federal district court in Pennsylvania, Healy obtained most of the funds from a Pennsylvania resident who invested his own money as well as funds provided by his attorney and more than 40 of their friends, acquaintances and business associates. The SEC alleges that Healy stole investor funds to purchase a $2.4 million home and more than 10 luxury vehicles including Porsches, Lamborghinis, Ferraris, a Bentley, and a Lincoln limousine. Healy further spent investor money to lease 2,500 square feet of garage space to store the vehicles. He also purchased approximately $1.4 million worth of jewelry including an engagement ring for his wife, and approximately $2.3 million in home renovations, including a $500,000 home movie theater.
The SEC's complaint further alleges that when Healy was questioned about his trading, he provided falsified bank and trading records to the Pennsylvania resident and to the U.S. Attorney's Office for the Middle District of Pennsylvania.
The SEC's complaint charges Healy with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks entry of a court order of temporary and permanent injunction against Healy, as well as an order directing Healy and the relief defendants to disgorge ill-gotten gains, and directing Healy to pay prejudgment interest and civil penalties. The SEC also seeks an order freezing the assets of Healy and the assets of the relief defendants that are traceable to the fraud, and requiring Healy and the relief defendants to account for the ill-gotten investor funds they received, expediting discovery, preventing the destruction or alteration of documents, and the appointment of a temporary receiver to oversee the assets of the Healys and Sand Dollar.
The U.S. District Court for the Middle District of Pennsylvania granted the SEC's request for a temporary restraining order and asset freeze against Healy, his wife and Sand Dollar Investing Partners. The court also appointed a receiver to oversee Healy's assets and all the assets of the relief defendants that are traceable to the fraud.
The SEC appreciates the assistance of the U.S. Attorney for the Middle District of Pennsylvania, U.S. Postal Inspection Service, and Commodity Futures Trading Commission (CFTC). The CFTC simultaneously filed a related emergency action against Healy and the relief defendants named in SEC's enforcement action.
The SEC's investigation is continuing.
