Former Securities Brokers Sentenced to Federal Prison Terms for Perpetrating Securities Fraud Scheme
MIAMI – A South Florida federal judge has ordered prison sentences for two former securities brokers who defrauded investors out of $1.5 million by -- among other things -- lying about stock offerings, failing to disclose their exorbitant commission rates, and using an alias to hide one of the broker’s disciplinary pasts.
U.S. District Judge Rodney Smith sentenced Jeffrey Alan Horn, 47, of Coral Springs, Florida to 100 months and Omar Leon Plummer, 54, of Margate, Florida, to 36 months in prison. In April, a federal jury in Ft. Lauderdale found Horn and Plummer guilty of conspiring to commit securities fraud. The jury also found Horn guilty of conspiracy to commit mail fraud and wire fraud, and four counts of securities fraud.
Between October 2014 and April 2016, Horn and Plummer contacted prospective investors and made materially false statements and omissions about the private placement offering of restricted common shares of Sunset Capital Assets (formerly known as Sunset Brands). Horn and Plummer failed to disclose to prospective investors that that the brokers would receive exorbitant commissions from the sale of Sunset stock. In addition, Plummer failed to disclose his real name to prospective investors, using the alias “Al Goldstein” to conceal his extensive disciplinary history in the securities industry. This discipline history included cease-and-desist orders issued by state regulators in Colorado and Arkansas that prohibited Plummer from engaging in certain securities activities in those states.
Horn and Plummer misled prospective Sunset investors in other ways. For example, Horn sent Private Placement Memoranda and other written offering materials to investors that misrepresented both Sunset’s assets and the company’s intended use for the funds. Horn, Plummer, and others funneled nearly all $1.5 million of Sunrise investor money into their own pockets. Neither Horn nor Plummer held an active securities license with the Financial Industry Regulation Authority (FINRA) when they contacted investors about the Sunset offering.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Robert M. DeWitt, Acting Special Agent in Charge, FBI Miami, announced the sentences.
FBI Miami investigated this case, with assistance from FINRA. Assistant U.S. Attorneys Dwayne Williams and David Snider prosecuted the case. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60019.