2020-01-08 sec-litreleases litigation_release 65 KB 2,131 chars

SEC v. Donald G. Blakstad; Energy Sources International Corporation; and Xact Holdings Corporation, No. LR-24711, Southern District of New York (Jan. 8, 2020) — Press Release

raw: Donald G. Blakstad

Donald G. Blakstad, No. LR-24711 (S.D.N.Y. Jan. 8, 2020)

Caption
SEC v. Donald G. Blakstad, et al.
Source PDF JSON
summary

Donald G. Blakstad orchestrated a $3.5 million offering fraud through his controlled entities, misappropriating at least $2.2 million for personal expenses, and faces SEC charges and parallel criminal charges.

paragraph

The SEC charged Donald G. Blakstad and two entities he controlled with orchestrating a $3.5 million securities fraud scheme between July 2015 and May 2019. Blakstad allegedly made false statements about the use of investor funds, misappropriating at least $2.2 million for personal expenses. He faces charges of violating antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.

narrative

The Securities and Exchange Commission (SEC) charged Donald G. Blakstad and two entities he controlled, Energy Sources International Corporation and Xact Holdings Corporation, with orchestrating a $3.5 million securities fraud scheme between July 2015 and May 2019. Blakstad allegedly made false statements about the use of investor funds, misappropriating at least $2.2 million for personal expenses, including a nightclub stake, luxury car, and entertainment. The SEC's complaint alleges violations of Sections 17(a) of the Securities Act and 10(b) of the Exchange Act. In a parallel action, the U.S. Attorney's Office for the Southern District of New York filed criminal charges against Blakstad, who was also previously charged in July 2019 for insider trading. The SEC's investigation involved collaboration with the FBI and the U.S. Attorney's Office. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, a civil penalty, and an officer and director bar against Blakstad.

Enriched metadata

Scheme
corporate-fraud (95%)
Court
Southern District of New York
Entity
Donald G. Blakstad
Classified corporate-fraud(confidence 95%). EDGAR detection: forms 10-K/10-Q/8-K· recall 56% / precision 8%. detection rule →
Statutes
Section 17(a) of the Securities ActSection 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionDonald G. BlakstadEnergy Sources International CorporationXact Holdings Corporation
Keywords
blakstaddonald blakstadsecuritiessecurities exchangeinvestor fundssec'sdonaldinvestorjanuary securitiesexchange commissioncommission donaldenergy sourcesxact holdingsagainst blakstadblakstad sec's

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 2
  • $3.50M $3.5 million $1M–$10M
  • $2.20M $2.2 million $1M–$10M
Entities 4
  • person donald g. blakstad
  • company energy sources international corporation
  • company fraudulent offer and sale of over $3.5 million of securities
  • person offering fraud
Triples 22
  • Donald G. Blakstad orchestrating offering fraud
  • SEC charged Donald G. Blakstad
  • SEC charged two entities he controlled
  • SEC alleges Blakstad induced investors to purchase the securities of companies he controlled
  • Blakstad engaging in fraudulent offer and sale of over $3.5 million of securities
  • Blakstad induced investors to purchase securities of companies he controlled
  • Blakstad controlled Energy Sources International Corporation
  • Blakstad controlled Xact H
  • Donald G. Blakstad charged with orchestrating fraudulent offer and sale of over $3.5 million of securities
  • Donald G. Blakstad induced investors to purchase securities of companies he controlled, including Energy Sources International Corporation and Xact H
  • Donald G. Blakstad charged with orchestrating offering fraud
  • Donald G. Blakstad controlled two entities
  • Donald G. Blakstad induced investors to purchase securities of companies he controlled
  • Donald G. Blakstad offered and sold over $3.5 million in securities
  • Energy Sources International Corporation controlled by Donald G. Blakstad
  • Xact H controlled by Donald G. Blakstad
  • SEC filed lawsuit against Donald G. Blakstad et al.
  • SEC alleged fraudulent offer and sale of securities
  • Donald G. Blakstad operated between July 2015 and May 2019
  • Donald G. Blakstad charged with orchestrating offering fraud involving over $3.5 million of securities
  • SEC charged Donald G. Blakstad and two entities he controlled with fraudulent offer and sale of securities
  • Donald G. Blakstad induced investors to purchase securities of companies he controlled, including Energy Sources International Corporation and Xact H
PDF (from attached: complaint)
SEC v. DONALD G. BLAKSTAD · Source
Text layers
Extracted body text (2,131c) 
SEC Charges Individual with Orchestrating Offering Fraud Litigation Release No. 24711 / January 8, 2020 Securities and Exchange Commission v. Donald G. Blakstad et al. (20-CV-163)(S.D.N.Y. filed January 8, 2020) The Securities and Exchange Commission charged Donald G. Blakstad and two entities he controlled with engaging in the fraudulent offer and sale of over $3.5 million of securities. The SEC's complaint alleges that, between July 2015 and May 2019, Blakstad induced investors to purchase the securities of companies he controlled, including both Energy Sources International Corporation and Xact Holdings Corporation, by making materially false and misleading statements and omissions about the use of investor proceeds and business operations. According to the SEC's complaint, instead of using investor funds as promised, Blakstad misappropriated at least $2.2 million of investor funds. Blakstad allegedly spent the investor funds on personal entertainment, the purchase of a stake in a night club, and a luxury automobile. In July 2019, the Commission charged Blakstad for his role in a separate insider trading scheme. In a parallel action, the United States Attorney's Office for the Southern District of New York announced criminal charges against Blakstad. The SEC's complaint, filed in federal court in New York, charges Blakstad, Energy Sources and Xact Holdings with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, a civil penalty, and an officer and director bar against Blakstad. The SEC's investigation was conducted by Patricia A. Paw and Brian R. Higgins of the Philadelphia Regional Office and supervised by Kelly L. Gibson and Brendan P. McGlynn. The SEC's litigation will be led by Jenifer C. Barry and Christopher R. Kelly. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation. SEC Complaint
OCR text (2,131c · html-text · 99% conf) 
SEC Charges Individual with Orchestrating Offering Fraud Litigation Release No. 24711 / January 8, 2020 Securities and Exchange Commission v. Donald G. Blakstad et al. (20-CV-163)(S.D.N.Y. filed January 8, 2020) The Securities and Exchange Commission charged Donald G. Blakstad and two entities he controlled with engaging in the fraudulent offer and sale of over $3.5 million of securities. The SEC's complaint alleges that, between July 2015 and May 2019, Blakstad induced investors to purchase the securities of companies he controlled, including both Energy Sources International Corporation and Xact Holdings Corporation, by making materially false and misleading statements and omissions about the use of investor proceeds and business operations. According to the SEC's complaint, instead of using investor funds as promised, Blakstad misappropriated at least $2.2 million of investor funds. Blakstad allegedly spent the investor funds on personal entertainment, the purchase of a stake in a night club, and a luxury automobile. In July 2019, the Commission charged Blakstad for his role in a separate insider trading scheme. In a parallel action, the United States Attorney's Office for the Southern District of New York announced criminal charges against Blakstad. The SEC's complaint, filed in federal court in New York, charges Blakstad, Energy Sources and Xact Holdings with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, a civil penalty, and an officer and director bar against Blakstad. The SEC's investigation was conducted by Patricia A. Paw and Brian R. Higgins of the Philadelphia Regional Office and supervised by Kelly L. Gibson and Brendan P. McGlynn. The SEC's litigation will be led by Jenifer C. Barry and Christopher R. Kelly. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation. SEC Complaint

Related documents (1)