Donald MacCord, 50, and Shannon Doyle, 50, formerly the CEO and CFO of Digi Outdoor Media, Inc., were arrested today for their role in an alleged conspiracy and fraud scheme. The United States Securities and Exchange Commission filed a parallel civil action against MacCord and Doyle in the Western District of Washington.
According to the indictment, from at least 2013 to 2017, MacCord and Doyle conspired in a scheme to defraud by making misrepresentations to raise money for Digi Outdoor Media, Inc. and then by misappropriating that money from Digi through an entity called Signworks, LLC. They then both concealed their misstatements and misappropriation in various ways, and obstructed the investigation of the Securities and Exchange Commission in San Francisco into their conduct.
MacCord and Doyle raised money for Digi in various ways, including by soliciting investments. They solicited investments both directly and through other entities and individuals, including an investment advisor firm registered with the SEC and the Financial Industry Regulatory Authority (FINRA). According to the indictment, MacCord and Doyle made various misrepresentations, both to the investment advisor firm and investors, including misrepresentations regarding the number of leases into which Digi had entered or had negotiated with landlords and was prepared to enter, about the number of sites "committed" for sign installation, and that the funds would be used to pay for the construction, installation, and maintenance of signs.
MacCord and Doyle then diverted Digi funds, including money raised from investors, to Signworks, concealing their diversion with fake invoices purporting to bill Digi for work done on non-existent sites. From Signworks, MacCord and Doyle misappropriated the funds to their own personal use.
As part of their conspiracy to defraud, MacCord and Doyle also lied in various other ways about the number of leases Digi had obtained. Specifically, MacCord and Doyle caused Digi to file a Form S-1 registration statement with the SEC to sell Digi shares publicly. The registration statement overstated the number of leases into which Digi had entered and the number of sign locations for which Digi had a right to install, and it failed to disclose MacCord’s and Doyle’s self-dealing with respect to Signworks.
MacCord and Doyle were both charged with conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and obstruction of official proceedings, in violation of 18 U.S.C. § 1512(c)(2). The United States Securities and Exchange Commission filed a parallel civil action against MacCord and Doyle in the Western District of Washington.
Donald MacCord and Shannon Doyle are currently in custody pending further proceedings. Their exact sentence or outcome has not been determined.
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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