SEC Accuses Lender Of Fraudulent Stock-Based Loan Scheme

Law360, New York (September 26, 2013, 9:56 PM EDT) -- The U.S. Securities and Exchange Commission on Thursday accused Alexander Capital Markets LLC and its founder William Dean Chapman Jr. of inducing borrowers to pledge stock as collateral for loans based on false promises that they would return the shares on repayment of the loans.

ACM generally sold shares immediately upon receiving them from borrowers and used the proceeds to pay obligations to other borrowers as they came due and pay operating costs “such as Chapman's purported salary,” the SEC said in a civil injunction suit...
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