SEC Charges Silver Edge Financial, Equity Acquisition Company and Sales Staff with Unregistered Broker-Dealer Activity
The Securities and Exchange Commission (SEC) charged Silver Edge Financial LLC, Equity Acquisition Company Ltd. (EAC), their owners, and sales staff of Silver Edge Financial with unregistered broker-dealer activity in relation to selling interests in shares of pre-IPO companies. The SEC found that Silver Edge, its owner Daniel J. Mackle, Sr., and six salespeople had raised more than $65 million from accredited investors since January 2019 without being registered as brokers with the SEC, which is a requirement. EAC and its founder Carsten Klein were also found to have acted as unregistered dealers by purchasing and selling pre-IPO shares for different funds, giving them access to highly anticipated offerings. The Orders stated that all respondents violated Section 15(a) of the 1934 Securities Act and agreed to cease and desist from future violations, promising to fulfill essential regulatory oversight. As part of the Order, Silver Edge and Mackle agreed to pay disgorgement and civil penalties of over $3.5 million dollars, while EAC and Klein agreed to pay disgorgement and civil penalties amounting to over $3.9 million. The six salespeople had to each pay a civil penalty ranging from $61,000 to $124,320. Lastly, all respondents agreed to undertake activities that will help ensure the legal and orderly distribution of pre-IPO interests.