US Securities and Exchange Commission charges Stephen Scott Moleski, David Michael and Erik Christian Jones with fraud
(STL.News) The Securities and Exchange Commission charged Stephen Scott Moleski (a/k/a Steve Scott) and David Michael with fraud in connection with an investment adviser and private fund enterprise they operated. The SEC also charged Moleski, Michael, and their agent, Erik Christian Jones, with engaging in unregistered offerings of securities and acting as unregistered brokers.
According to the SEC’s complaint, during 2018 and 2019, Moleski, Michael, and Jones solicited investors to purchase securities offered by a pair of unaffiliated companies. As alleged, approximately 30% of the funds raised from investors in connection with these two securities offerings were paid, directly or indirectly, to the defendants as commissions. The complaint alleges that none of the defendants were registered as broker-dealers or affiliated with registered broker-dealers at the time. The complaint also alleges that Moleski and Michael, operating through various business entities, acted as investment advisers in connection with three private investment funds that they and their agents, such as Jones, offered and sold to investors beginning in 2019. Moleski and Michael, the complaint alleges, misled investors into believing that the monies investors entrusted to Moleski and Michael would be invested in one or more securities.