UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-82711, February 14, 2018: On September 13, 2017, the SEC instituted proceedings pursuant to Section 15(b) of the Securities Exchange Act of 1934, against Respondent Daryl G. Bank. Respondent has submitted an Offer of Settlement which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, Respondent admits the Commission's jurisdiction over him and the subject matter of these proceedings, and the findings contained herein, and consents to the entry of this Order Making Findings and Imposing Remedial Sanctions as to Daryl G. Bank Pursuant to Section 15(b) of the Securities Exchange Act of 1934. On the basis of this Order and Respondents' Offer, the Commission finds that on April 25, 2017, a judgment was entered by consent against Respondent, permanently enjoining him from future violations of Sections 5 and 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 thereunder, in Civil Action Number 2:15-cv-00609, in the United States District Court for the District of Arizona.

Order

Bar (Permanent)

Any broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

2/14/2018

Penny Stocks

Indefinite

2/14/2018

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC LITIGATION RELEASE 23236/APRIL 9, 2015: ON APRIL 6, 2015, THE SECURITIES AND EXCHANGE COMMISSION (SEC) CHARGED 12 COMPANIES AND SIX INDIVIDUALS, ONE OF THEM BEING DARYL BANK, WITH DEFRAUDING INVESTORS IN A SCHEME INVOLVING APPLICATIONS TO THE FEDERAL COMMUNICATIONS COMMISSION (FCC) FOR CELLULAR SPECTRUM LICENSES. ACCORDING TO THE SEC'S COMPLAINT, TWO INDIVIDUALS ORCHESTRATED THE OFFERING FRAUD THROUGH A COMPANY THEY FOUNDED AND MANAGED. THE SEC ALLEGES THAT INVESTORS IN THE SCHEME WERE PROMISED POTENTIALLY LUCRATIVE RETURNS BASED ON THE COMPANY OBTAINING FCC LICENSES IN THE EXPANSION BAND AND GUARD BAND PORTIONS OF THE 800 MEGAHERTZ (MHZ) BAND. THE COMPANY AND FUNDRAISING ENTITIES, INCLUDING BANK'S SEVEN COMPANIES, CLAIMED THAT INVESTORS COULD PROFIT BECAUSE MAJOR WIRELESS CARRIERS NEEDED LICENSES IN THIS SPECTRUM. IN FACT, THE VALUE OF THE LICENSES WAS SMALL BECAUSE THIS SPECTRUM CANNOT SUPPORT CELLULAR SYSTEMS AND IS GENERALLY USED FOR "PUSH-TO-TALK" SERVICES FOR LOCAL LAW ENFORCEMENT OR BUSINESSES LIKE PIZZA DELIVERY COMPANIES THAT REQUIRE LESS BANDWIDTH. THE SEC'S COMPLAINT ALLEGES THAT THE SCHEME RAISED MORE THAN $12.4 MILLION FROM INVESTORS FROM MAY 2012 TO OCTOBER 2014. THE FUNDRAISING ENTITIES FUNNELED A SIGNIFICANT PERCENTAGE OF THE INVESTORS' FUNDS TO THE COMPANY, WHICH USED ONLY A SMALL PORTION TO PREPARE APPLICATIONS FOR FCC LICENSES. THE COMPLAINT ALLEGES THAT INSTEAD, ALL OF THE INDIVIDUALS IN THE SCHEME KEPT A SIGNIFICANT PORTION OF INVESTOR FUNDS FOR PERSONAL USE. THE COMPLAINT ALLEGES THAT BANK VIOLATED SECTIONS 5(A), 5(C), 17(A)(1), 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT OF 1933 AND SECTIONS 10(B) AND 15(A)(1) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER.

Judgment Rendered

Injunction

FINRA

SECTION 17(A) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17A-3 THEREUNDER, NASD RULES 2110, 3110 AND 8210: RESPONDENT DARYL BANK AND ANOTHER RESPONDENT MISAPPROPRIATED APPROXIMATELY $161,000 IN COMMISSIONS AND OTHER PAYMENTS BELONGING TO HIS MEMBER FIRM FOR THEIR OWN USE BY DIRECTING HIS FIRM TO WIRE MONEY FROM THE FIRM'S SUBSIDIARY TO AN ACCOUNT CONTROLLED BY ANOTHER RESPONDENT, WHO IN TURN TRANSMITTED THE FUNDS TO AN ENTITY CONTROLLED BY BANK AND KEPT A PORTION FOR HIMSELF. BANK ENTERED FALSE INFORMATION CONCERNING SECURITIES TRANSACTIONS ON THE BUSINESS RECORDS OF HIS FIRM, WILLFULLY CAUSING HIS FIRM TO MAINTAIN INACCURATE BOOKS AND RECORDS. BANK PROVIDED FALSE INFORMATION IN RESPONSE TO FINRA REQUESTS FOR INFORMATION AND PROVIDED FALSE AND MISLEADING TESTIMONY UNDER OATH IN A FINRA ON-THE-RECORD INTERVIEW.

Decision & Order of Offer of Settlement

Bar (Permanent)

All Capacities

Indefinite

2/5/2010

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, BANK CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. THE SETTLEMENT INCLUDES A FINDING THAT BANK WILLFULLY VIOLATED SECTION 17(A) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17A-3 THEREUNDER, AND THAT UNDER ARTICLE III, SECTION 4 OF THE FINRA BY-LAWS, THIS FINDING MAKES HIM SUBJECT TO A STATUTORY DISQUALIFICATION WITH RESPECT TO ASSOCIATION WITH A MEMBER.

ON AUGUST 24TH, 2009 FINRA FILED A COMPLAINT AGAINST MR. BANK AND TWO OTHER INDIVIDUALS, ALLEGING VIOLATIONS OF NASD RULES. MR BANK INTENDS TO VIGOROUSLY CONTEST THE ALLEGATIONS.