Business

July 24, 2014

SEC files charges against two South Florida men allegedly involved in a boiler room scheme

The Securities and Exchange Commission on Thursday announced a second round of charges against individuals, including two people from South Florida, who were allegedly behind a boiler room scheme.

The Securities and Exchange Commission on Thursday announced a second round of charges against individuals, including two people from South Florida, who were allegedly behind a boiler room scheme.

The SEC had already charged operators of the scheme, based in South Florida and Los Angeles, whose firms had allegedly pressured investors into purchasing stock in Thought Development, a Miami Beach-based company that said it invented a laser-line system that generates a green line on a football field for a first-down marker visible not only on television but also to players, officials, and fans in the stadium.

The SEC on Thursday charged four executives, including Dean R. Baker of Coral Springs and Bret A. Grove of Delray Beach, who allegedly helped make the scheme possible. The SEC also charged three companies – DDBO Consulting, DBBG Consulting, and CalPacific Equity Group that allegedly raised $1.7 million from more than 110 investors who were allegedly told that an initial public offering in Thought Development was imminent.

The SEC alleges that the IPO was not forthcoming, and at least 50 percent of the offering proceeds were merely retained by these companies or paid to sales agents through undisclosed commissions and fees. The U.S. Attorney’s Office also announced criminal charges against Baker and Grove, who have settled with the SEC.

Related content

Comments

Videos

Editor's Choice Videos