Delaware DOJ’s Investor Protection Unit Secures Indictment Against New Jersey Man

Date Posted: Friday, March 21st, 2014
Categories:  Department of Justice DOJ Press Releases Fraud New Castle County

Wilmington – Attorney General Beau Biden today announced that the Delaware Department of Justice Investor Protection Unit has obtained an indictment charging Michael A. Kwasnik with theft, securities fraud, sale of unregistered securities, and acting as an unregistered broker dealer following its investigation of a scheme to defraud investors. Kwasnik, age 45, of Marlton, New Jersey, was indicted March 17, by the New Castle County Grand Jury.

“We are protecting  Delaware’s investors and enforce our securities laws,” Biden said. “I urge any investor who believes they may be a victim of investment fraud to contact our Investor Hotline at (302) 577-8424.”

The indictment charges Kwasnik with soliciting Delaware victims on multiple occasions between May 2010 and September 2010. In addition to 4 counts of theft, the indictment charges Kwasnik with 4 counts of securities fraud, 4 counts of selling unregistered securities, and 4 counts of acting as an unregistered agent. Delaware law prohibits misrepresentations in the sale of securities, requires that securities for sale in Delaware be registered with the State, and requires persons selling securities in Delaware to be properly licensed with the Attorney General’s Investor Protection Unit.

The Attorney General’s Office, through its Investor Protection Unit, enforces the Delaware Securities Act, which regulates the sale of investment products and the activities of investment professionals in Delaware. The Unit investigates and prosecutes securities fraud and licensing violations by investment brokers and advisers. Delaware investors are encouraged to report suspected incidents of investment crime and fraud by calling the Attorney General’s Investor Hotline at (302) 577-8424.

This case is being handled for the Investor Protection Unit by Deputy Attorneys General William Green and Stephen McDonald, Special Investigator Kevin Lange, and Paralegal Courtney Patas.

The Delaware Department of Justice reminds the public that an indictment is merely an allegation and is not evidence of guilt. Defendants are presumed innocent and are entitled to a jury trial at which the state bears the burden of proving each charge beyond a reasonable doubt.

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