Illinois Resident Charged With $4 Million Investment Fraud

The Securities and Exchange Commission (“SEC”) charged Illinois resident Kenneth A. Dachman (“Dachman”) with misappropriating more than $1.8 million in investor funds and making material misrepresentations to potential investors in connection with offerings for three companies for which he was the Chairman – Central Sleep Diagnostics, LLC, Central Sleep Diagnostics of Florida, LLC, and Advanced Sleep Devices, LLC. The broker for the three offerings, Scott A. Wolf, and his company, Stone Lion Management, Inc., were also charged by the SEC for their roles in selling unregistered securities.

According to the Complaint, between July 2008 and June 2010, Dachman raised $3.5 million from investors in 13 states and overseas on behalf of Central Sleep Diagnostics, a purported provider of outpatient diagnostic sleep studies. The Complaint states that, between December 2008 and April 2010, Dachman raised an additional $568,000 on behalf of Central Sleep Diagnostics of Florida and Advanced Sleep, a purported provider of medical devices.

The SEC alleges that Dachman made numerous misrepresentations to potential investors including, how their funds would be used and his academic and professional backgrounds. The SEC also claims Dachman misappropriated at least $1.8 million of investor funds, representing over 45% of the total funds raised, for such things as a 10,000 square foot home, lavish family vacations, a new Range Rover and other personal expenses.

Investors nationwide who have incurred investment losses, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at Rabin Kammerer Johnson for a free and confidential consultation by calling toll free at 877.915.4040.