Pike County, Alabama Man Indicted for Alleged Securities Fraud

A gavel. (courtesy MGN Online)
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Montgomery, AL (WTVY) Douglas Valeska, District Attorney for the 20th Judicial Circuit, Houston County, Alabama; and Joseph Borg, Director of the Alabama Securities Commission (ASC) announced that on December 7, 2015, Jesse Morgan Hinson, of Troy, Alabama was arrested for alleged violations of the Alabama Securities Act. Hinson turned himself in to Houston County law enforcement officials based on an arrest warrant issued after the October 2015 Houston County Grand Jury returned a four-count indictment. Hinson was released on $75,000 bond pending trial.

The indictment charges Hinson with one count of Sale of Unregistered Securities and one count of Sale of Securities by an Unregistered Agent; which are Class C felonies, punishable by one year and one day to 10 years’ imprisonment and a $15,000 fine per charge, upon conviction. Additionally, the indictment charges Hinson with two counts of Fraud in Connection with the Sale of Securities for making misrepresentations or omissions of material fact to an investor and for engaging in an act, practice or course of business which operates as a fraud or deceit upon an investor. The fraud charges are Class B felonies, punishable by two to 20 years’ incarceration and a $30,000 fine per charge, upon conviction.

The indictment alleges Hinson represented to an Alabama investor that he operated a business that purchased and sold scrap metal for profit. Hinson allegedly solicited investment in this scrap metal business by offering investment contracts to the Alabama investor, and obtained funds from the investor between August 2013 and January 2014. The indictment alleges that Hinson was not registered with the ASC as a dealer or agent of securities in Alabama, nor were the investment contracts he offered registered with the ASC as securities to be sold in Alabama, as required by the Alabama Securities Act, that Hinson did not in fact operate a scrap metal business, and that the investors’ funds were instead used for personal expenses.

The ASC cautions potential investors to thoroughly scrutinize and research any investment opportunity or offer. Contact the ASC with inquiries concerning securities broker-dealers, agents, investment advisers, investment adviser representatives, financial planners, registration status of securities or debt management programs, to report suspected fraud or to obtain consumer information. The ASC provides free investor education and fraud prevention materials in print, on our website and through educational presentations upon request.

For further information contact Dan Lord, Education and Public Affairs Manager, 334-353-4858.

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(NOTE: An arrest or indictment is not evidence that the defendant committed the crime(s) charged. The defendant is presumed innocent until the government meets its burden of proving guilt beyond reasonable doubt in court).

ALABAMA SECURITIES COMMISSION
Post Office Box 304700
Montgomery, Alabama 36130-4700
Telephone: (334) 242-2984 or 1-800-222-1253 Fax: (334) 242-0240
Email: asc@asc.alabama.gov Website: www.asc.alabama.gov



 
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