UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC LITIGATION RELEASE 21455, MARCH 19, 2010: THE SECURITIES AND EXCHANGE COMMISSION ("COMMISSION") FILED A COMPLAINT AGAINST DEFENDANT R. DANE FREEMAN, ALLEGING VIOLATIONS OF SECTION 17(A) OF THE SECURITIES ACT OF 1933 AND SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER. THE SEC'S COMPLAINT ALLEGED THAT FREEMAN AND THE OTHER DEFENDANT OPERATED A FRAUDULENT HIGH YIELD INVESTMENT SCHEME, IN WHICH THEY RAISED OVER $3.5 MILLION FROM APPROXIMATELY 35 INVESTORS. THE COMPLAINT ALLEGED THAT DURING THE FIRST NINE MONTHS OF 2008, FREEMAN AND THE OTHER DEFENDANT ENTICED INVESTORS BY PROMISING THAT THEIR FIRM OR A GERMAN ENTITY WOULD GENERATE RETURNS AS HIGH AS 4900% IN TWO MONTHS BY TRADING AA AND AAA RATED BONDS AND/OR MEDIUM TERM NOTES. THE DEFENDANTS MISREPRESENTED THAT THEIR FIRM ITSELF WOULD INVEST $3 MILLION IN THE BONDS AND/OR MEDIUM NOTES, AND MISREPRESENTED THAT THEY HAD EARNED HUNDREDS OF MILLIONS OF DOLLARS IN SUCH TRADING. THE COMPLAINT ALSO ALLEGED THAT THE OTHER DEFENDANT WAS AN ATTORNEY AT A SOUTH CAROLINA LAW FIRM WHERE HE USED HIS FIRM'S E-MAIL SYSTEM AND LETTERHEAD, WITHOUT THE FIRM'S KNOWLEDGE, IN THE PERPETRATION OF THE FRAUD. NEITHER THEIR FIRM NOR THE GERMAN ENTITY EVER PURCHASED OR SOLD THE BONDS AND/OR THE MEDIUM TERM NOTES, AND NO RETURNS WERE EVER GENERATED FOR THE INVESTORS. THE COMPLAINT FURTHER ALLEGED THAT FREEMAN MISAPPROPRIATED INVESTORS' MONEY BY DIVERTING IT TO HIS FAMILY, TO A COLLEAGUE'S GIRLFRIEND, TO PAYING FREEMAN'S DEBTS, AND BY PAYMENTS TO OTHER INVESTORS.

Judgment Rendered

Civil and Administrative Penalty(ies)/Fine(s)

Disgorgement

$3,500,000.00

Monetary Penalty other than Fines

Injunction

SOUTH CAROLINA SECURITIES DIVISION

SELLING UNREGISTERED SECURITIES, UNREGISTERED AGENT OFFERING & SELLING SECURITIES, MAKING UNTRUE STATEMENTS AND OMITTING MATERIAL FACTS.

Order

Cease and Desist

Civil and Administrative Penalty(ies)/Fine(s)

$10,000.00

NASD

RESPONDENT IS SUSPENDED PURSUANT TO THE PROVISIONS OF RULE 9552 SERIES NON-SUMMARY SUSPENSION SANCTION.

Other

Bar

PURSUANT TO NASD PROCEDURAL RULE 9552(H) AND, IN ACCORDANCE WITH THE NOTICE OF INTENT TO SUSPEND AND NOTICE OF SUSPENSION DATED DECEMBER 20, 2006 AND JANUARY 16, 2007, RESPONDENT IS BARRED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY AS OF JUNE 26, 2007.