Originally Syndicated on June 22, 2023 @ 9:48 am
The Securities and Exchange Commission (SEC) accused Daniel Mackle Silver Edge Financial LLC, Equity Acquisition Company Ltd. (EAC), their other owners, and sales representatives of engaging in unregistered broker-dealer activities in connection with their sales of shares of several pre-IPO businesses on 3 March 2023. We’ll go into the case’s specifics and ramifications in this piece.
At Silver Edge Financial, Daniel Mackle serves as CEO. Before this, he served as Chief Executive Officer at Pendulum Capital Markets. The college attended by Daniel Mackle was Manhattanville.
A group of affiliated investment vehicles managed by Silver Edge Financial is claimed to have made it achievable for exposure to primary as well as secondary alternative investment products, which are usually restricted to institutional investors. They handle every opportunity that is identified, organized, and made available to qualified, accredited people.
Daniel Mackle Silver Edge Financial LLC and Equity Acquisition Company Ltd. are accused by the SEC
The SEC accuses Equity Acquisition Company Ltd. and Daniel Mackle Silver Edge Financial LLC of engaging in unregistered broker-dealer activity.
Daniel Mackle Silver Edge Financial: Case Summary
In two funds that were formed up as series LLCs, each series of which represented an ownership stake in shares of a single pre-IPO firm, Daniel Mackle Silver Edge Financial LLC, which is owned by Daniel J. Mackle, Sr., and six salesmen have sold stakes since January 2019.
Holdings in stocks of companies that were anticipated to conduct an offering to the public or other liquidity events between two to five years were the underlying assets for this series. The SEC required Silver Edge, Mackle, along with their representatives to register as brokers, but they did not do so while collecting more than $65 million.
Additionally, the founder of Equity Acquisition Company Ltd. (EAC), Carsten Klein, and the company engaged in the business of acquiring pre-IPO shares and selling them for sale to other pre-IPO funds, including the Daniel Mackle Silver Edge Financial funds, as unregistered dealers.
EAC invested over $14 million in pre-IPO companies, including several highly anticipated offerings, and then sold over $13.4 million worth of shares to other pre-IPO funds, retaining the unsold shares in inventory.
Information from the SEC for Daniel Mackle Silver Edge Financial
According to the SEC’s orders, Section 15(a) of the Securities Exchange Act of 1934 was violated by Klein, EAC, Mackle, Silver Edge, and the six salespeople. None of the respondents admitted or denied the conclusions, but they all consented to refrain from similar infractions in the future.
More than $2.5 million in disgorgement, prejudgment interest, and a $975k civil fine will be paid by Silver Edge and Mackle. In addition, they consented to industrial and penny stock bans with a five-year reapplication period. EAC and Klein agreed to fork over more than $3.6 million in disgorgement, prejudgment interest, and a $269,360 civil penalty.
Aside from that, Daniel Mackle Silver Edge Financial, EAC, and Klein consented to obligations that will aid in ensuring the legal and proper allocation of pre-IPO interests. Scott Esposito, Richard Konopka, Dave Nicolas, Robert Daniel Louis, Joshua Simmons, and Daniel Esposito were the six salespeople who consented to pay civil fines ranging from $61,000 to $124,320 as well as industry and penny stock restrictions.
Other Allegations on Daniel Mackle Silver Edge Financial
To demonstrate the type of businessman Daniel Mackle is, I may also reveal to you some of his other disclosures. Is he trustworthy enough to pursue a commercial partnership or trading?
He has five disclosures for both his other businesses and himself in total. He has five disclosures for both his other businesses and himself in total. Regarding the SEC allegations, I’ve already explained one to you.
Allegation on 1 October 2000
When a private placement was sold, the client was mistakenly identified as an accredited investor. The client expressed his disapproval of the way his account was treated as a result. At the moment of the transaction, The registrant was the supervisor at Barron Chase Securities, Inc.
- Request for Damage Amount: $20,000.00
- Amount of the Settlement: $20,000
Allegation on 21 October 2010
Lien/Judgment Amount $18,071.00
Tax on Judgment/Lien
Allegation on 29 July 2021
Unauthorized and excessive trading, false statements, and a failure to exercise supervision
- $550,000.00 is the requested damage amount.
- $250,000.00 was paid as compensation.
Allegation on 25 April 2022
Appropriateness swirling, and fiduciary duty violations
- Requested Damage Amount: $1,800,000.
Allegation on 3 March 2023
Regarding pre-IPO funds, the SEC accuses Daniel Mackle Silver Edge Financial and Equity Acquisition Company of engaging in unregistered broker-dealer activity.
Daniel Mackle claims himself a seasoned investor and prosperous businessman. He established Silver Edge Financial, a business that promises to provide wealthy people with excellent investing options. Two private equity investments are being managed by Silver Edge Financial. The first one, known as the Silver Edge Pre-IPO Fund, asserts that it focuses on businesses that are anticipated to have a significant financial event soon. The second fund, the Silver Edge Venture Fund, shows a preference for well-known businesses like Palantir Technologies, Airbnb, and SOFI Technology. The business is based in Hackensack, New Jersey.
What are Equity Investments?
Equity, also known as shareholders’ equity or owners’ equity for privately owned companies, is the sum of money that would remain in the hands of a company’s shareholders if all of its assets were sold off and its liabilities were fully settled. It is the worth of company sales less any obligations owing by the company that were not conveyed with the sale in the case of an acquisition.
The financial value of a corporation can also be represented by shareholder equity. Equity may occasionally be provided as payment-in-kind. Additionally, it shows how many shares of a corporation each person owns.
One of the most popular types of information used by analysts to evaluate a firm’s financial health is equity, which can be located on a balance sheet of a corporation.
Conclusion
Finally, we may conclude that Daniel Mackle Silver Edge Financial is completely untrustworthy in business and that his companies are equally disloyal with their assets. He is unable to provide his customers with good, trustworthy gratification. You must now decide what you think of him after reading about his deeds.
