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New York Man Admits to Securities Fraud Scheme
TRENTON, N.J. – Donald A. Milne III, a 57-year-old man from Massapequa, New York, pleaded guilty to securities fraud in a long-running scheme that defrauded over 70 investors of more than $3.5 million, according to Acting U.S. Attorney Rachael A. Honig.
Milne’s scheme, which began in 2012, involved the sale of securities through his companies Instaprin Pharmaceuticals Inc. and SPI Acquisition Corp. He falsely represented to investors that their money would be used for legitimate business purposes, but instead misappropriated the funds for his personal gain.
Between 2013 and 2016, Milne caused his companies to issue at least four separate unregistered securities offerings, raising over $4 million from victim investors across the country. He deposited the funds into bank accounts he controlled and used them to pay out distributions to other investors in a Ponzi-scheme fashion, as well as to pay for his personal expenses.
Milne’s scheme continued until 2018, when he made numerous false and misleading statements to investors about the progress of his companies and the potential for returns on their investments. He represented that his company’s product had been approved by the FDA, that a product launch and public stock offering were imminent, and that the company was in negotiations with large pharmaceutical corporations for joint business ventures.
As a result of his guilty plea, Milne faces a maximum sentence of 20 years in prison and a fine of up to $5 million. His sentencing is scheduled for a later date.
Defendant: Donald A. Milne III
Criminal Charges: Securities Fraud
City and State: TRENTON, N.J.
Date: April 2023
Sentence: Guilty Plea, Sentencing Scheduled for Later Date
Dollar Amounts: $3.5 million lost by investors, $4 million raised through unregistered securities offerings
Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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