General’s Securities Division Halts Sale of
Unregistered Securities by Company Falsely Claiming Patent of Bullet
MD ( April 29, 2010) -Attorney General Douglas F.
Gansler announced today that the Securities Division has issued
a Summary Order to Cease and Desist against John F. Curran,
III and Gargoyles, Inc. The Securities Division alleges that
Curran and Gargoyles are violating the Maryland securities
laws by selling unregistered securities, acting as an unregistered
broker-dealer and agent, and engaging in fraud in the offer
and sale of securities.
According to the order,
Curran and Gargoyles held investor sales meetings at the company’s Carroll County facility and told
potential investors that the company owned special patented technology,
including a stab protection plate and a fabric body armor system.
Curran and Gargoyles claimed that annual sales from these products
would grow in one year from $3,770,809 to $72,000,000. According
to the order, the company owned no patented technology. Curran
and Gargoyles raised over $2.3 million from more than 299 investors
mostly from Carroll and Baltimore counties. Further, after receiving
the Securities Division’s subpoena, Curran stated to the
Division that he would not make additional sales of Gargoyles stock.
However, according to the order, on April 14, 2010, Gargoyles sent
an e-mail to its shareholders soliciting names of potential investors.
“The Securities Division took this action to stop the further
victimization of Maryland investors,” said Attorney General
Gansler. “Curran and Gargoyles are ordered to immediately
halt the fraudulent sale of Gargoyles stock in Maryland.”
Attorney General Gansler
thanked the Carroll County State’s
Attorney’s Office for referring the matter. The State’s
Attorney’s Office is continuing to investigate the sale of
unregulated securities. Individuals who purchased Gargoyles stock
are encouraged to contact the Securities Division at 410-576-6407.
Investors should call the Securities Division at 410-576-6360 before
they invest to find out whether an investment adviser, broker or
securities is registered.
A copy of the Securities
Division’s Summary Order to Cease
and Desist can be found at http://www.oag.state.md.us/Securities/Actions/2010/GargoylesSumm_CD_4_29_10.pdf