July 26, 2012
Malcolm Parker, the Addison county filmmaker involved in an alleged $28 million scheme to defraud hundreds of Vermonters has agreed to the entry of judgment against him on all counts in a lawsuit brought against him by the Vermont Department of Financial Regulation, Commissioner Steve Kimbell announced today.
The civil action was brought in 2009 and led to a criminal investigation by the United States Attorney for Vermont. In April of this year Parker pled guilty in federal district court to conspiring to commit wire fraud and to filing a false tax document. In the state action, judgment has now been entered against Parker for engaging in securities fraud, offering and selling unregistered securities, failing to register as an investment advisor, and unlawfully offering investment advice. Under the judgment, Parker is permanently barred from offering to sell and from selling registered or unregistered securities.
As part of the alleged scheme Parker solicited funds from investors who were led to believe that the money they were investing was going to pay for the production of a movie. In fact, according to court documents, a substantial amount of the money raised by Parker for that project was used to pay earlier investors or sent to Parker’s silent partner, one Louis Soteriou. Soteriou is facing federal criminal charges for his involvement in the alleged fraud.
“The Department of Financial Regulation will vigorously enforce the securities laws of this State and will continue to work to protect consumers from frauds such as the one perpetrated by Mr. Parker,” said Commissioner Kimbell. “The civil judgment entered against Mr. Parker together with his criminal conviction sends a strong message to anyone looking to scam Vermonters that if they choose to violate the law their misdeeds will not go unpunished.”
In the federal action Parker will be ordered to pay restitution to victims of the fraudulent scheme. As a result, explained Commissioner Kimbell, “We did not seek a fine from Parker in the civil action in order to make the maximum amount of funds available to federal officials for restitution.”
Source: Banking, Insurance, Securities Health Care Administration
Last Updated at: July 26, 2012 09:31:48