Transfer Agent Pocketed $630K in Client Funds, SEC Says

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By Jennifer Bennett

Registered transfer agent Quicksilver and its president face an SEC suit alleging they misappropriated around $630,000 in client funds, including $500,000 they loaned to another company.

Quicksilver Stock Transfer LLC and Alan Shinderman, its president and owner, allegedly misappropriated $630,000 in transfer funds, according to the Securities and Exchange Commission’s complaint in the U.S. District Court for the District of Nevada.

Quicksilver received $1.45 million from China Energy Corp. and was supposed to transfer the funds to a clearing corporation for the benefit of China Energy’s shareholders, according to the complaint.

Instead, Quicksilver allegedly made a $500,000 loan to another Nevada company, which wasn’t repaid and forwarded until six weeks after Quicksilver was supposed send the money to the clearing firm, the SEC said. The other $130,000 went to payments to other companies and to Shinderman’s landlord, according to the Jan. 24 complaint.

Barney C. Ales, a Las Vegas-based attorney representing the defendants, told Bloomberg Law that “My clients will vigorously defend the case brought by the SEC and expect to be vindicated at the conclusion of the case.”

“The SEC has been investigating my clients regarding an alleged incident that took place five years ago,”Ales said. “That incident did not result in any losses to any of my clients’ customers; and further, no customer has made any formal complaint against my clients or filed any legal action against them.”

The case is SEC v. Shinderman , D. Nev., No. 2:18-cv-00131, 1/24/18 .

To contact the reporter on this story: Jennifer Bennett in Washington at jbennett@bloomberglaw.com

To contact the editor responsible for this story: Seth Stern at sstern@bloomberglaw.com

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