SEC Charges Staten Island-Based Firm With Operating Boiler Room Scheme Targeting Seniors
The SEC charged Staten Island-based Premier Links Inc., its former president Dwayne Malloy, and sales reps Chris Damon and Theirry Ruffin with defrauding over 300 seniors of at least $9 million through a boiler room scheme that fabricated IPO opportunities and stole investor funds, leading to civil charges and parallel criminal prosecution.
Premier Links Inc., its former president Dwayne Malloy, and sales representatives Chris Damon and Theirry Ruffin are charged by the SEC with defrauding more than 300 elderly investors of at least $9 million by cold-calling them with false claims about imminent IPOs of start-up companies. The defendants, who operated without SEC registration as broker-dealers, diverted nearly all investor funds to themselves, fabricated account statements to simulate share ownership, and never purchased any securities for victims—including stealing $300,000 from a single elderly veteran after months of building false trust. The SEC alleges violations of antifraud provisions under the Securities Act of 1933 and Securities Exchange Act of 1934, seeking disgorgement, financial penalties, and asset recovery from relief defendants, while the U.S. Attorney’s Office filed parallel criminal charges.
The SEC charged Staten Island-based Premier Links Inc., its former president Dwayne Malloy, and sales representatives Chris Damon and Theirry Ruffin with operating a fraudulent boiler room scheme that targeted over 300 elderly investors across the U.S., defrauding them of at least $9 million. Using high-pressure cold calls from a maintained list, the defendants falsely claimed that investors were buying shares in start-ups on the verge of IPOs, while concealing that only a tiny fraction of funds ever reached the promoted companies—most was siphoned off to entities controlled by the defendants or their associates. They built false trust with victims, including spending months cultivating a relationship with an elderly veteran to steal $300,000, and provided fabricated account statements suggesting shares were held in safekeeping, despite transfer agent records confirming no purchases were ever made. Premier Links was never registered with the SEC as a broker-dealer, and the defendants violated federal securities laws by selling unregistered securities and engaging in deceptive practices. The SEC’s complaint charges them with violating antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, as well as broker-dealer registration requirements, and seeks disgorgement of ill-gotten gains, civil penalties, and recovery from relief defendants holding scheme proceeds. In a parallel action, the U.S. Attorney’s Office for the Eastern District of New York filed criminal charges against the same individuals. The investigation was conducted by the SEC’s New York Regional Office with assistance from the FBI and the U.S. Attorney’s Office.
Exhibits & Attached Documents (1)
Extracted insights
- $9.00M $9 million $1M–$10M
- $300K $300,000 $100K–$1M
- person criminal charges
- person premier links
- company premier links inc.
- agency Securities and Exchange Commission
- agency with the sec as a broker-dealer
- Securities And Exchange Commission charged :
- Securities And Exchange Commission alleges Dwayne Malloy, Chris Damon, And Theirry Ruffin Treated Vulnerable Older Investors As Their Personal Atm Machines
- Premier Links Inc. diverted Investor Funds To Other Entities Controlled By The Sales Representatives Or Other Associates
- Premier Links has never been registered With The Sec As A Broker-Dealer
- Premier Links, Malloy, Damon, And Ruffin fraudulently obtained At Least $9 Million From More Than 300 Investors
- Damon And Malloy defrauded An Elderly Veteran Of $300,000
- U.S. Attorney’s Office For The Eastern District Of New York filed Criminal Charges
- Securities And Exchange Commission charges Premier Links, Malloy, Damon, And Ruffin With Violating The Antifraud Provisions Of The Securities Act Of 1933 And The Securities Exchange Act Of 1934
- Securities And Exchange Commission charges Premier Links, Malloy, Damon, And Ruffin With Selling Securities Without A Registration Statement Filed With The Sec
- Securities And Exchange Commission seeks Disgorgement Of Ill-Gotten Gains And Financial Penalties
- Securities And Exchange Commission appreciates The Assistance Of The U.S. Attorney’s Office For The Eastern District Of New York And The Federal Bureau Of Investigation
The Securities and Exchange Commission today charged a Staten Island, N.Y.-based firm, its former president, and two sales representatives involved in a fraudulent boiler room scheme targeting seniors to invest in speculative start-up companies. The SEC alleges that Dwayne Malloy, Chris Damon, and Theirry Ruffin treated vulnerable older investors as their personal ATM machines. They cold-called names from a list they maintained at Premier Links Inc. and used high-pressure sales tactics to convince seniors to invest in companies purportedly on the brink of conducting initial public offerings (IPOs). They never disclosed to the investors that only a small fraction of the money would be transmitted to the promoted companies, and Premier Links diverted investor funds to other entities controlled by the sales representatives or other associates. According to the SEC’s complaint filed in U.S. District Court for the Eastern District of New York, Premier Links has never been registered with the SEC as a broker-dealer as required under the federal securities laws to conduct this type of business with investors. Premier Links, Malloy, Damon, and Ruffin fraudulently obtained at least $9 million from more than 300 investors across the country by building a relationship of purported trust and confidence with them. In one particularly egregious example, Damon and Malloy spent months earning the trust of an elderly veteran in order to defraud him of $300,000. In many instances, investors were provided with misleading account statements showing the shares they purportedly purchased as being held for safekeeping in their Premier Links accounts while awaiting the promised IPOs. Yet transfer agent records for the relevant companies indicate that shares were never purchased for these investors. Investor money was simply stolen instead. “Premier Links was a boiler room operated by unscrupulous schemers who made their living by cold-calling seniors and inducing them to buy worthless stock as they stole their money outright,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office. In a parallel action, the U.S. Attorney’s Office for the Eastern District of New York today filed criminal charges. The SEC’s complaint charges Premier Links, Malloy (who was company president from 2007 to 2012), Damon, and Ruffin with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934 as well as the broker-dealer registration provisions of the Exchange Act. They also are charged with selling securities without a registration statement filed with the SEC. The complaint seeks disgorgement of ill-gotten gains and financial penalties among other remedies. The complaint also names several relief defendants for the purposes of recovering money from the scheme in their possession. The SEC’s investigation was conducted by Joshua Newville, Peter Pizzani, Thomas P. Smith Jr., and Michael Osnato of the SEC’s New York Regional Office. The case was supervised by Amelia A. Cottrell, and the litigation will be led by Todd Brody. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of New York and the Federal Bureau of Investigation.
The Securities and Exchange Commission today charged a Staten Island, N.Y.-based firm, its former president, and two sales representatives involved in a fraudulent boiler room scheme targeting seniors to invest in speculative start-up companies. The SEC alleges that Dwayne Malloy, Chris Damon, and Theirry Ruffin treated vulnerable older investors as their personal ATM machines. They cold-called names from a list they maintained at Premier Links Inc. and used high-pressure sales tactics to convince seniors to invest in companies purportedly on the brink of conducting initial public offerings (IPOs). They never disclosed to the investors that only a small fraction of the money would be transmitted to the promoted companies, and Premier Links diverted investor funds to other entities controlled by the sales representatives or other associates. According to the SEC’s complaint filed in U.S. District Court for the Eastern District of New York, Premier Links has never been registered with the SEC as a broker-dealer as required under the federal securities laws to conduct this type of business with investors. Premier Links, Malloy, Damon, and Ruffin fraudulently obtained at least $9 million from more than 300 investors across the country by building a relationship of purported trust and confidence with them. In one particularly egregious example, Damon and Malloy spent months earning the trust of an elderly veteran in order to defraud him of $300,000. In many instances, investors were provided with misleading account statements showing the shares they purportedly purchased as being held for safekeeping in their Premier Links accounts while awaiting the promised IPOs. Yet transfer agent records for the relevant companies indicate that shares were never purchased for these investors. Investor money was simply stolen instead. “Premier Links was a boiler room operated by unscrupulous schemers who made their living by cold-calling seniors and inducing them to buy worthless stock as they stole their money outright,” said Andrew M. Calamari, Director of the SEC’s New York Regional Office. In a parallel action, the U.S. Attorney’s Office for the Eastern District of New York today filed criminal charges. The SEC’s complaint charges Premier Links, Malloy (who was company president from 2007 to 2012), Damon, and Ruffin with violating the antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934 as well as the broker-dealer registration provisions of the Exchange Act. They also are charged with selling securities without a registration statement filed with the SEC. The complaint seeks disgorgement of ill-gotten gains and financial penalties among other remedies. The complaint also names several relief defendants for the purposes of recovering money from the scheme in their possession. The SEC’s investigation was conducted by Joshua Newville, Peter Pizzani, Thomas P. Smith Jr., and Michael Osnato of the SEC’s New York Regional Office. The case was supervised by Amelia A. Cottrell, and the litigation will be led by Todd Brody. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of New York and the Federal Bureau of Investigation.