Four days ago the SEC announced its suit against Delaney Equity Group LLC, a Florida-based stock broker and OTC market maker (market maker ID: DLNY), for allegedly refusing to hand over documents related to an investigation by the SEC’s microcap fraud task force.
See the SEC litigation release. Excerpt:
The SEC’s complaint, filed in the United States District Court for the Southern District of Florida, alleges that in April 2015, the SEC Enforcement Division required Delaney to produce to it various categories of documents it was legally required to preserve and produce, upon demand, to the SEC. The complaint further alleges that Delaney, despite being granted several extensions and having made repeated representations through its counsel that the firm would produce documents, has failed to provide any responsive documents to date.1-1 1-2 1-main
The case is 9:15-cv-81384-DMM Securities and Exchange Commission v. Delaney Equity Group LLC. The case is in the U.S. District Court for the Southern District of Florida with Judge Donald M. Middlebrooks presiding.
SEC complaint (PDF)
|Set/Reset Motion/R&R Deadlines and Hearings|
|Acknowledgment of Service|
|Motion for Preliminary Injunction|
|Order on Motion for Temporary Restraining Order|
|Clerk’s Notice of Consent to Proceed Before Magistrate Judge|
|Motion for Temporary Restraining Order|
This is not the first time that Delaney Equity Group LLC has run afoul of regulators. The company and its founder David C. Delaney were censured by and fined a combined $255,000 by FINRA in 2012 for abetting the sale of unregistered shares in microcap stocks.
From the FINRA offer of settlement:
During the period from December 2008 through July 2010, DEG, acting through
Delaney, its President, Chief Compliance Officer (CCO) and Anti-Money Laundering
Compliance Officer (AMLCO), allowed customer B.A. and its numerous affiliated
accounts to sell almost a billion newly issued, unregistered equity shares offive issuers:
Connectyx (CTYX), ProPalms USA, Inc. (PRPM), Shot Spirits (SSPr), Solos Endoscopy
(SNDY) and Green Bridge (GRBG). As a result, DEG and Delaney participated in the
distribution ofalmost a billion shares ofunregistered and non-exempt securities, in
contravention ofSection 5 ofthe Securities Act of 1933 (Securities Act). and in violation
ofFINRA Rule 2010.
Customer “B.A.” is Big Apple Consulting.