Triangle Equites Group Case 7/10/2008

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Company Name(s): 
Triangle Equites Group
Case Name: 
Triangle Equites Group Case 7/10/2008
Case Status: 
Lawsuit Filed
Lawsuit Overview
Type of Lawsuit: 
SEC Action
Date Filed: 

According to the US Securities and Exchange Commission, the SEC filed on July 10th, 2008, a civil action in the U.S. District Court for the Southern District of Ohio charging convicted felon Michael Spillan, his wife Melissa Spillan, and their companies, One Equity Corporation, Triangle Equities Group, Inc., Victory Management Group, Inc. and Dafcan Finance, Inc. (collectively, the One Equity Companies) with operating an ongoing fraudulent stock loan program.

The Commission’s complaint alleges that, since at least 2004, the Spillans, who are residents of Gahanna, Ohio, and the One Equity Companies, which are located in Westerville, Ohio, raised approximately $70 million from 125 borrowers by holding themselves out as stock based lenders, underwriters, or administrators. According to the complaint, the defendants raised the money by inducing borrowers to transfer ownership of millions of shares of publicly traded stock to them as collateral for purported non-recourse loans based on a false promise to return the shares to borrowers who repaid their loans. In fact, the defendants generally sold all of the stock received from borrowers before funding each loan. After funding each loan, the Spillans did not set aside any cash reserves to repurchase and return shares to borrowers who repaid their loans. Instead, they used all of the money to pay expenses, including over $1 million in salaries and benefits to themselves.

In an order dated July 10, the Honorable Judge Edmund A. Sargus, Jr. entered a temporary restraining order that, among other things, prohibits defendants from making any loans, making any disbursements from business accounts without prior Court approval, paying salaries to the Spillans, and destroying or discarding any relevant financial records.