Eric Brown, Mail Fraud, Florida 2011

A shocking case of mail fraud has come to light in Florida. Eric Brown, a 50-year-old man from Brooklyn, New York, has been charged with one count of mail fraud, in violation of Title 18, United States Code, Section 1341.

The information alleges that Brown agreed to pay a purported fund manager one share for every four shares of buying that the fund would make in DAM Holdings, Inc. (DAMH). In October 2011, Brown agreed to come to Florida to induce the fund manager to invest in DAMH.

The case is being prosecuted by Assistant U.S. Attorney H. Ron Davidson. Brown’s actions demonstrate a clear disregard for the law and the rights of others. His actions could have significant financial consequences for the victims.

The Southern District of Florida Securities and Investment Fraud Initiative was first announced in December 2010 and designed to combat securities fraud and protect the interests of the investing public. The Initiative has yielded similar success, resulting in charges against 180 defendants in the Southern District of Florida, resulting in more than $1.8 billion in restitution ordered.

The law enforcement and regulatory agencies involved in the investigation include the U.S. Attorney’s Office, FBI, IRS-CI, USSS, USPIS, SEC, CFTC, FTC, FDIC-OIG, and the Florida Office of Financial Regulation. These agencies have shared intelligence and combined their resources to combat securities and investment fraud, including Ponzi schemes, affinity fraud schemes, prime bank/high-yield investment scams, business opportunity fraud, promoter/micro-cap/”pump and dump” schemes, foreign exchange (FOREX) frauds, false bankruptcy petitions, and other schemes to defraud individual investors.

The public is urged to exercise caution when investing and to be aware of the potential for scams. The authorities are working tirelessly to protect the interests of the investing public and to bring those responsible for these crimes to justice.

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