BALTIMORE (Legal Newsline) - Maryland Attorney General Douglas Gansler announced a summary order to cease and desist and an order to show cause Wednesday against a Catonsville man and his companies for allegedly selling unregistered securities.
Scott Steele, SteeleSoft Inc., SteeleSoft Management Inc., RealEasi Direct LLC and OfferRings Direct LLC allegedly violated Maryland securities laws by selling and offering unregistered securities, engaging in fraud in the offering and sale of securities, and acting as and employing unregistered issuer agents. Gansler's Securities Division issued the the orders on Wednesday.
"We want potential investors to know about these alleged fraudulent securities practices and caution individuals against investing or further investing with Steele and his companies," Gansler said. "Steele and his companies are ordered to stop offering and selling investments, including promissory notes and limited liability company interests issued by his companies."
Steele and his companies allegedly offered and sold close to $3 million in investments since 2008, even after several of his companies filed for bankruptcy in late 2012 and 2013.
Steele allegedly offered and sold investments in Maryland by misrepresenting and failing to disclose his companies' actual business activities and financial status, his and his companies' extensive litigation history, how investor monies would be used, the true nature of the investments and other material facts. Steele also allegedly failed to advise prospective investors of bankruptcies filed by related entities.
Gansler's Securities Division seeks sanctions against Steele and his companies, including a permanent bar from the securities and investment advisory business in Maryland and fines.