The U.S. Securities and Exchange Commission is trying to compel a Rockland County financial adviser to pay $3.5 million he agreed to pay nearly two years ago.
On Oct. 23, the SEC filed an application in White Plains federal court to enforce a 2023 cease-and-desist order that was issued against Daniel Mackle Sr. and Silver Edge Financial LLC.
Mackle, 54, of Pomona, founded Silver Edge Financial LLC, of Hackensack, New Jersey, in 2018.
The firm sold memberships in funds that held shares in private companies that Mackle expected to be sold or become publicly-traded in a few years.
The idea was to buy shares when they were cheap. Then, if the companies were sold or went public, share prices would probably increase and the investors would make great profits.
From 2019 to 2023, Mackle raised more than $65 million.
The problem, according to SEC documents, was that Mackle and his sales staff were not registered with the SEC to sell securities and were not subject to regulatory oversight.
In March 2023, Mackle and Silver Edge consented to a cease-and-desist order for operating an unregistered broker-dealer.
They agreed to disgorge more than $2.5 million in ill-gotten gains and pay a $975,000 penalty. The SEC also barred Mackle from associating with anyone in the securities industry or from participating in any penny stock offerings, for five years.
At this point, Mackle and Silver Edge may not challenge the validity of the 2023 cease-and-desist order, according to SEC lawyer Michael J. Roessner. He is asking the court to direct them to explain why they do not have to comply with the 2023 order.
