Today, after a 10-day trial and just over two hours of deliberation, a jury in the U.S. District Court for the Central District of California found Michael P. Owens, Dawson L. Davenport, Robert A. Gunton, Andrea J. Lindstrom, and Julie A. Yale liable for securities fraud. The jury also determined that Owens, Gunton, and Yale violated the securities registration provisions of the federal securities laws, and that Owens violated the broker-dealer registration provisions of the federal securities laws.
Statement by SEC Division of Enforcement Director Gurbir S. Grewal:
“We are pleased with the jury verdict holding these defendants liable for their roles in fraudulent securities offerings that raised more than $67 million from investors. Defendants Owens, Davenport, and Lindstrom set up and controlled a boiler room that cold-called investors to solicit private investments in an aerospace start-up, but misrepresented how the investor funds would be used: they concealed that significant investor funds were spent on sales commissions to unregistered brokers, that nearly a third of the invested funds were spent on offering costs, and that most of these offering costs went to Owens and entities he controlled. The jury also found all of the defendants liable for a separate fraudulent scheme to conduct unregistered offers and sales of securities to generate more illicit profits for Owens. As this trial demonstrates, the SEC is committed to protecting investors and holding fraudsters accountable.”
* * *
More Information
The SEC filed its civil complaint on Sept. 1, 2021.
