Vestavia Hills man, Georgia partner indicted in securities fraud scheme

Thursday, 12 October 2017, 04:24:19 PM. A Jefferson County grand jury issued eight-count indictments against Steven Clyde Reed Brown, 65, and Edward Malcolm Portman, a 76-year-old Atlanta man. The indictments were announced Tuesday by Jefferson County District Attorney Pro Tem Danny Carr and Joseph Borg, director of the Alabama Securities Commission.

A Vestavia Hills man and his partner in Georgia have been indicted in a securities fraud scheme.

A Jefferson County grand jury issued eight-count indictments against Steven Clyde Reed Brown, 65, and Edward Malcolm Portman, a 76-year-old Atlanta man. The indictments were announced Tuesday by Jefferson County District Attorney Pro Tem Danny Carr and Joseph Borg, director of the Alabama Securities Commission.

Brown was arrested Sept. 19, and Portman on Sept. 25. Both were released from the Jefferson County Jail after posting $195,000 each.

According to indictments filed in the case, both men are charged with multiple violations of the Alabama Securities Act including one count each of conspiracy to commit securities fraud, sale of unregistered securities and sale of securities by an unregistered agent. Brown and Portman also are charged with five counts of fraud in connection with the sale of securities - making false statements of material fact or omitting to state a material fact; and engaging in an act, practice or course of business which operated or would operate as a fraud or deceit upon any person).

The conspiracy and securities registration charges are Class C felonies, punishable by possible imprisonment from one year and one day to 10 years and not more than a $15,000 fine per charge upon conviction. The remaining charges are Class B felonies, punishable by possible imprisonment of from two to 20 years and up to a $30,000 fine per charge upon conviction.

According to the indictment, Brown and Portman alleged illegal securities transactions involving investment contracts and/or certificates of interest or participation in a profit-sharing agreement with Alabama investors for the development of medical technology and products. The indictment further alleged that Brown and Portman omitted to inform investors that no one had ever received any return of principal or profit for their investments and that, in a previous instance, the men continued to illegally solicit investor funds after having been previously issued a Cease and Desist Order by the Alabama Securities Commission. ASC records revealed that neither Brown nor Portman were registered with the Commission to lawfully offer and/or sell securities within, into or from Alabama, as required by law, according to Tuesday's announcement.

The ASC cautions potential investors to thoroughly scrutinize and research any investment opportunity or offer. Contact the ASC with inquiries concerning securities broker-dealers, agents, investment advisers, investment adviser representatives, financial planners, registration status of securities or debt management programs, to report suspected fraud or to obtain consumer information.

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Article Vestavia Hills man, Georgia partner indicted in securities fraud scheme compiled by www.al.com