AG Gansler's Securities Division Orders Catonsville Man with Multiple Firms to Stop Selling Fraudulent Securities
$3 million worth of unregistered investments
sold since 2008
Baltimore, MD ( April 10, 2013) - Attorney General Douglas F. Gansler announced today that his Securities Division has issued a Summary Order to Cease and Desist and an Order to Show Cause against Scott R. Steele, of Catonsville, and the companies he owns and controls. The order alleges that Steele and his firms, SteeleSoft, Inc., SteeleSoft Management, Inc., RealEasi Direct, LLC, and OfferRings Direct, LLC, are violating Maryland securities laws by offering and selling unregistered securities, acting as and employing unregistered issuer agents and engaging in fraud in the offer and sale of securities.
"We want potential investors to know about these alleged fraudulent securities practices and caution individuals against investing or further investing with Steele and his companies," said Attorney General Gansler. "Steele and his companies are ordered to stop offering and selling investments, including promissory notes and limited liability company interests issued by his companies."
The Securities Division is seeking sanctions against Steele and his companies, including fines and a permanent bar from the securities and investment advisory business in Maryland. The order alleges that Steele and his companies have offered and sold nearly $3 million in investments since 2008, even after several of his companies filed for bankruptcy in late 2012 and 2013.
According to the order, Steele offered and sold investments in Maryland by misrepresenting and failing to disclose: the true nature of the investments; how investor monies would be used; his companies' actual business activities and financial status; his and his companies' extensive litigation history and other material facts. In recent solicitations, Steele failed to advise prospective investors of bankruptcies filed by related entities.
Attorney General Gansler encourages anyone who invested monies with Scott R. Steele or his companies to contact the Securities Division at 410-576-7649. Investors are strongly encouraged to call the Securities Division at 410-576-6360 before they invest with anyone to verify that the investments and the individual are appropriately registered, and to inquire about any disciplinary history.
To see a copy of the OAG Securities Division's Summary Order to Cease and Desist and its Order to Show Cause, visit: http://www.oag.state.md.us/Securities/Actions/2013/Steele SummOCD_OSC_4_13.pdf