Attorney General Beau Biden announced that the Delaware Department of Justice Securities Division has obtained an indictment charging a New Castle County man with theft, securities fraud, and tax evasion following its investigation of a scheme to defraud investors out of nearly $1 million.
David Attarian, 46, of Wilmington, who was indicted Monday by the New Castle County Grand Jury, was released on $260,000 unsecured bail following his arrest.
“We’ve acted to protect Delaware’s investors and enforce our Securities laws,” Biden said. “I urge any investor who believes they may be a victim of investment fraud to contact our Investor Hotline at (302) 577-8424.”
The indictment charges Attarian with soliciting his victims on multiple occasions between October, 2006 and October, 2008. In addition to five counts of theft, the indictment charges Attarian with five counts of securities fraud, five counts of selling unregistered securities, and 3 counts of acting as an unregistered agent. The securities were described as interests in a company.
Delaware law prohibits misrepresentations in the sale of securities, requires that securities for sale in Delaware be registered with the State, and requires persons selling securities in Delaware to be properly licensed with the Attorney General’s Securities Division.
The indictment also charges Attarian with five counts of income tax evasion for failing to file an income tax return or pay state income taxes from 2006 through 2010 on more than $1.3 million dollars in taxable income.
The Attorney General’s Office, through its Securities Division, enforces the Delaware Securities Act, which regulates the sale of investment products and the activities of investment professionals in Delaware. The Unit investigates and prosecutes securities fraud and licensing violations by investment brokers and advisers. Delaware investors are encouraged to report suspected incidents of investment crime and fraud by calling the Attorney General’s Investor Hotline at (302) 577-8424.
The Delaware Department of Justice reminds the public that an indictment is merely an allegation and is not evidence of guilt. Defendants are presumed innocent and are entitled to a jury trial at which the state bears the burden of proving each charge beyond a reasonable doubt.
