Originally Syndicated on June 1, 2024 @ 10:21 am
The Securities and Exchange Commission (SEC) charged Daniel Mackle Silver Edge Financial LLC, Equity Acquisition Company Ltd. (EAC), their other owners, and sales representatives engaged in unregistered broker-dealer activities in connection with the sale of shares in several pre-IPO businesses on March 3, 2023. In this article, we will discuss the case’s specifics and ramifications.
Daniel Mackle is Silver Edge Financial’s CEO. He previously served as CEO of Pendulum Capital Markets. Daniel Mackle attended Manhattanville College.
Silver Edge Financial claims that a set of related investment vehicles has made it possible to gain access to main and secondary alternative investment products that are often only available to institutional investors. They manage all opportunities that are recognized, organised, and made available to eligible, accredited individuals.
The SEC has accused Daniel Mackle, Silver Edge Financial LLC, and Equity Acquisition Company Ltd.
The SEC charges Equity Acquisition Company Ltd. and Daniel Mackle Silver Edge Financial LLC with engaging in unregistered broker-dealer conduct.
Daniel Mackle Silver Edge: Case Summary.
Since January 2019, Silver Edge Financial LLC, owned by Daniel J. Mackle, Sr., and six salesmen, has sold investments in two funds constituted as series LLCs, each representing an ownership stake in shares of a single pre-IPO corporation.
This series’ underlying assets were holdings in equities of companies expected to execute a public offering or other liquidity events within the next two to five years. The SEC required Silver Edge, Mackle, and their representatives to register as brokers, but they did not do so despite earning more than $65 million.
Furthermore, the founder of Equity Acquisition Company Ltd. (EAC), Carsten Klein, and the company participated in the business of acquiring pre-IPO shares and selling them to other pre-IPO funds, including the Daniel Mackle Silver Edge Financial funds, as unregistered dealers.
EAC invested more than $14 million in pre-IPO companies, including several highly anticipated offerings, and subsequently sold over $13.4 million in shares to other pre-IPO funds, keeping the remaining shares in inventory.
SEC filings for Daniel Mackle, Silver Edge Financial
According to the SEC orders, Klein, EAC, Mackle, Silver Edge, and the six salespeople violated Section 15(a) of the Securities Exchange Act of 1934. None of the respondents accepted or contested the findings, but all agreed to desist from similar breaches in the future.
Silver Edge and Mackle will pay more than $2.5 million in disgorgement, prejudgment interest, and civil penalties of $975,000. Furthermore, they agreed to industrial and penny stock restrictions with a five-year reapplication term. EAC and Klein agreed to pay 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 agreed to terms that will help ensure the lawful and proper allocation of pre-IPO interests. Scott Esposito, Richard Konopka, Dave Nicolas, Robert Daniel Louis, Joshua Simmons, and Daniel Esposito are the six salespeople who agreed to pay civil fines ranging from $61,000 to $124,320, as well as industry and penny stock limitations.
Other Allegations Against Daniel Mackle Silver Edge Financial
To highlight the type of businessman Daniel Mackle is, I may expose some of his other disclosures. Is he trustworthy enough to engage in a commercial partnership or trading?
He has five disclosures for his other businesses and himself combined. He has five disclosures for his other businesses and himself combined. Regarding the SEC allegations, I’ve already discussed one with 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
Unauthorised 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
In relation to pre-IPO funds, the SEC accuses Daniel Mackle Silver Edge Financial and Equity Acquisition Company of engaging in unregistered broker-dealer activity.
Daniel Mackle calls himself a seasoned investor and successful businessman. He founded Silver Edge Financial, which promises to give good investment opportunities for wealthy individuals. Silver Edge Financial currently manages two private equity assets. The first, known as the Silver Edge Pre-IPO Fund, claims to focus on companies that are expected to have a large financial event soon. The second fund, the Silver Edge Venture Fund, has a bias for well-known companies such as Palantir Technologies, Airbnb, and SOFI Technologies. The company is situated in Hackensack, New Jersey.
What is 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 in the event that 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.
Shareholder equity can be used to illustrate a corporation’s financial value. Equity may occasionally be used as payment in kind. It also shows how many shares of a corporation each individual owns.
One of the most common pieces of information used by analysts to assess a company’s financial health is equity, which can be found on a corporation’s balance sheet.
Conclusion
Finally, we may infer that Daniel Mackle Silver Edge Financial is utterly untrustworthy in business, and that his companies are also unfaithful with their assets. He is unable to supply his customers with satisfactory, trustworthy fulfilment. You must now decide what you think of him after learning about his actions.
