Last week, officials unsealed a criminal indictment that charged three men with securities fraud and other fraud charges in connection to an alleged $51 million stock loan fraud scheme. Officials assert that the scheme defrauded people in multiple states, including California, Georgia, and Florida. According to a recent press release, the indictment alleges that through several business entities (including those operating under the name “Argyll” and “Amerifund”) James T. Miceli, of Poway, California; Douglas McClain, Jr., of Savannah, Georgia; and Jeffrey Spanier, of Delray Beach, Florida, fraudulently induced borrowers to pledge stock held in publicly traded companies as collateral for loans. Borrowers were allegedly told that their stock would not be sold unless the loan went into default. The indictment further alleges that Miceli, McClain, and Spanier falsely represented Argyll as an institutional lender, which possessed significant cash to lend to various individuals. The men also allegedly failed to disclose the fact that Argyll intended to sell the stock to fund the collateral loans and to fund the men’s various business ventures. Miceli, McClain, and Spanier were each charged with one count of conspiracy, seven counts of mail fraud, 15 counts of wire fraud, one count of securities fraud, and 11 counts of money laundering in connection to the alleged stock loan fraud scheme. If convicted, the men could each face more than 20 years in prison.
