SEC Obtains Final Judgments Against Daniel Adams, Michael Flanders, Spiderworx Media LLC, and An L.A. Minute LLC
SEC Action Daniel Adams Michael Flanders SEC Action Daniel Adams Michael Flanders
On June 16, 2020, the Securities and Exchange Commission (the “SEC”) has obtained final judgments against movie director and convicted felon Daniel Adams, music producer Michael Flanders, and companies under their control for defrauding two investors in connection with financing the movie entitled An L.A. Minute.
The SEC’s complaint, filed on February 26, 2019, alleges that in 2016, Adams and Flanders induced the two individuals to invest $160,000 through two companies, Spiderworx Media LLC and An L.A. Minute LLC, using fabricated documents and misrepresentations. For example, according to the complaint, Flanders sent one investor, who said he would invest only if $200,000 was raised elsewhere, a fictitious wire transfer confirmation and signature page forged by Adams to create the false appearance that the funds had been raised. The complaint alleges that Adams and Flanders personally received $29,000 and $10,000, respectively, from the resulting investment.
The final judgment against Adams, entered December 2, 2019, enjoins him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule l0b-5(b) thereunder; enjoins him from participating in the issuance, purchase, offer, or sale of any security in an unregistered offering; and orders him to pay disgorgement of $50,562 plus prejudgment interest of $7,087.99 and a $50,562 civil penalty.
The final judgment against Flanders, entered May 26, 2020, enjoins him from violating the same antifraud provisions, and orders him to pay disgorgement of $28,500 plus prejudgment interest of $4,354.20 and a $28,500 civil penalty.
The final judgments against Spiderworx Media LLC and An L.A. Minute LLC, entered February 27, 2020, enjoin them from violating the same antifraud provisions, and order them to pay civil penalties in the amounts of $60,000 and $100,000, respectively.
This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes. For more information about going public with Form S-1, Form F-1 and Regulation A Securities Offerings, Rule 506 and Regulation CF crowdfunding, sponsoring market makers and Form 211, dual listings and foreign issuer listings and public company SEC reporting requirements, please contact Hamilton & Associates Law Group.
Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.SecuritiesLawyer101.com
