SEC v. Discover Capital Holdings Corp.; Eli Dinov; Ari Dinov; David Rubinov; Stronghold Associates, Inc.; and Indianapolis Securities, Inc., No. LR-18231, District of Columbia (July 16, 2003) — Press Release
raw: Discover Capital Holdings Corp., et al.
Discover Capital Holdings Corp., et al., No. LR-18231 (D.D.C. July 16, 2003)
Eli Dinov, Ari Dinov, David Rubinov, Discover Capital Holdings Corp., and Indianapolis Securities, Inc. defrauded retirees of $1.1 million through spam emails and high-pressure sales of private placement shares, leading to a federal judge freezing $1.45 million in assets—later releasing $15,000 for employee commissions—while facing SEC charges for securities fraud.
The SEC charged Eli Dinov, Ari Dinov, David Rubinov, Discover Capital Holdings Corp., and Indianapolis Securities, Inc. with securities fraud for raising $1.1 million from retirees via misleading spam emails and high-pressure sales of private placement shares. On July 9, 2003, Judge Rosemary M. Collyer froze $1.1 million in assets belonging to the two corporate defendants, and on July 14, an additional $350,000 in assets of the three individuals and Stronghold Associates, Inc. were frozen. The court later lifted the freeze on $15,000 held in Indianapolis Securities’ clearing account to pay legitimate employee commissions, while preserving the remainder for potential investor restitution.
The SEC alleged that Eli Dinov, his brother Ari Dinov, and David Rubinov orchestrated a $1.1 million fraud targeting retirees by using spam emails and high-pressure sales calls to sell private placement shares of Discover Capital Holdings Corp., a company they controlled through its broker-dealer subsidiary, Indianapolis Securities, Inc. On July 9, 2003, Judge Rosemary M. Collyer issued an order freezing $1.1 million in assets belonging to Discover Capital and Indianapolis Securities. Four days later, on July 14, the judge expanded the asset freeze to include approximately $350,000 in assets belonging to the three individual defendants and Stronghold Associates, Inc., bringing the total frozen assets to $1.45 million. However, the court later permitted the release of $15,000 from Indianapolis Securities’ clearing account to pay legitimate commissions owed to employees, demonstrating a nuanced approach to preserving investor funds while allowing necessary operational expenses. The defendants are charged with securities fraud for misrepresenting the value and legitimacy of the investments, with the SEC seeking injunctive relief and asset preservation to facilitate potential restitution to victims. The case remains pending in U.S. District Court for the District of Columbia, with all frozen assets held in trust pending further legal proceedings. The fraud scheme exploited retirees through deceptive outreach, highlighting the SEC’s focus on protecting vulnerable investors from fraudulent private placements.
Extracted insights
- $1.10M $1.1 million $1M–$10M
- $350K $350,000 $100K–$1M
- $15K $15,000 $10K–$100K
- person judge collyer
- person judge rosemary m. collyer
- agency the united states securities and exchange commission
- The United States Securities and Exchange Commission sought an order in D.C. Federal District court freezing assets of Eli Dinov, Ari Dinov, David Rubinov and Stronghold Associates, Inc.
- Judge Rosemary M. Collyer froze approximately $350,000 in assets of the four defendants
- Judge Collyer issued a prior order freezing $1.1 million of the assets of two of the defendants, Discover Capital Holdings Corp. and Indianapolis Securities, Inc.
- Judge Collyer released some of the assets of Indianapolis Securities to be used to pay commissions owed to certain employees
- Judge Collyer lifted the freeze with respect to $15,000 held in an account with Indianapolis Securities' clearing firm
- The Commission's complaint alleges that the defendants, Eli Dinov, his brother Ari Dinov, and David Rubinov used spam e-mail touts and misleading, high pressure sales calls to raise $1.1 million dollars through the sale of private placement shares of Uniondale, New York-based Discover Capital Holdings Corp.
Litigation Release No. 18231 / July 16, 2003 SEC v. Discover Capital Holdings Corp., et al., 03 Civ. 1496 (D.D.C., filed July 9, 2003) Judge Freezes Assets of Four Additional Defendants in SEC Suit Against Million-Dollar Scam Targeting Retirees The United States Securities and Exchange Commission on July 14, 2003 sought an order in D.C. Federal District court freezing assets of Eli Dinov, Ari Dinov, David Rubinov and Stronghold Associates, Inc., four of the six defendants named in the Commission's July 9, 2003 complaint. On July 14th, the Honorable Judge Rosemary M. Collyer froze approximately $350,000 in assets of the four defendants. Judge Collyer's prior order, issued on July 9, 2003, froze $1.1 million of the assets of two of the defendants, Discover Capital Holdings Corp. and Indianapolis Securities, Inc. On Monday, in addition to freezing assets of the four other defendants, Judge Collyer released some of the assets of Indianapolis Securities to be used to pay commissions owed to certain employees and lifted the freeze with respect to $15,000 held in an account with Indianapolis Securities' clearing firm. The Commission's complaint alleges that the defendants, Eli Dinov, his brother Ari Dinov, and David Rubinov used spam e-mail touts and misleading, high pressure sales calls to raise $1.1 million dollars through the sale of private placement shares of Uniondale, New York-based Discover Capital Holdings Corp., a company controlled by the individual defendants, through Discover's wholly-owned broker-dealer subsidiary, Indianapolis Securities, Inc. For additional information, see Litigation Release 18222.
Litigation Release No. 18231 / July 16, 2003 SEC v. Discover Capital Holdings Corp., et al., 03 Civ. 1496 (D.D.C., filed July 9, 2003) Judge Freezes Assets of Four Additional Defendants in SEC Suit Against Million-Dollar Scam Targeting Retirees The United States Securities and Exchange Commission on July 14, 2003 sought an order in D.C. Federal District court freezing assets of Eli Dinov, Ari Dinov, David Rubinov and Stronghold Associates, Inc., four of the six defendants named in the Commission's July 9, 2003 complaint. On July 14th, the Honorable Judge Rosemary M. Collyer froze approximately $350,000 in assets of the four defendants. Judge Collyer's prior order, issued on July 9, 2003, froze $1.1 million of the assets of two of the defendants, Discover Capital Holdings Corp. and Indianapolis Securities, Inc. On Monday, in addition to freezing assets of the four other defendants, Judge Collyer released some of the assets of Indianapolis Securities to be used to pay commissions owed to certain employees and lifted the freeze with respect to $15,000 held in an account with Indianapolis Securities' clearing firm. The Commission's complaint alleges that the defendants, Eli Dinov, his brother Ari Dinov, and David Rubinov used spam e-mail touts and misleading, high pressure sales calls to raise $1.1 million dollars through the sale of private placement shares of Uniondale, New York-based Discover Capital Holdings Corp., a company controlled by the individual defendants, through Discover's wholly-owned broker-dealer subsidiary, Indianapolis Securities, Inc. For additional information, see Litigation Release 18222.