DENVER—A Loveland man has settled a complaint the Securities and Exchange Commission filed accusing him of misappropriating investor funds.
The SEC on Friday accused David William Thomas of raising about $6.3 million from more than 140 investors nationwide through his company Global Marketing Consultants LLC by offering unregistered securities in two companies from June 2002 through February 2005.
The SEC said about one-third of the investors were seniors.
It alleged that Thomas and GMC told investors their money would be pooled into “non-depleting custodial” bank accounts, when in fact Thomas planned to use investors’ money for prime bank trading programs.
Thomas and GMC did not admit or deny the SEC’s claims but consented to an order permanently enjoining them from future violations of securities laws listed in the complaint, according to court documents.
Earlier this year, Thomas pleaded guilty to a criminal charge of conspiracy to commit securities fraud and money laundering over allegations involving the same companies. He was sentenced to 42 months in prison and was ordered to pay restitution of $4.4 million.
