Greenville, Sc, Securities Attorney Scott Pfeiffer Charged With Fraud

Greenville, SC, Securities Attorney Scott Pfeiffer Charged With Fraud

by

Brenda Hamilton Securities Lawyer

Lawyers Gone Wild Series

In June 2012, the South Carolina Attorney General s Office unsealed an indictment charging securities attorney Scott Pfeiffer with felony securities fraud and felony conspiracy. Pfeiffer s co-defendant, investment firm manager Arthur Field, was charged with felony securities fraud, felony conspiracy, and forgery.

According to the indictment, Field and Pfeiffer created a web of shell companies that supposedly lent money to each other, and concealed what they were doing from legitimate investors in Capital Investment. To aid their scheme, the indictment alleged that the pair concocted a series of prospectuses to be sent to prospective investors, allegedly omitting critical information about Capital s financial condition and its relationship to the shell companies. The indictment further states that they went so far as to invent fictitious company officers for the shells in order to hide interrelationships among the shells.

Investors allegedly lost $38 million in the scheme.

This is not the first time Pfeiffer and Field have come under the regulatory microscope. In 2007, Capital Investment Funding sought to issue and register $50 million in promissory notes. The exemption cited in the registration statement was the intrastate exemption. The South Carolina Securities Commission took the view that Capital did not qualify for that exemption, and announced its intention of denying effectiveness of the registration statement.

Only a few days before the indictment was unsealed, South Carolina Lawyers Weekly published a guest article by Pfeiffer, in which he pontificated on the Jumpstart Our Business Startups Act, explaining how it would help small businesses raise money.

Hamilton & Associates | Securities Lawyers Brenda Hamilton, Securities Attorney 101 Plaza Real South, Suite 201 South Boca Raton, Florida 33432 Telephone: (561) 416-8956 Facsimile: (561) 416-2855www.SecuritiesLawyer101.com

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Greenville, SC, Securities Attorney Scott Pfeiffer Charged With Fraud