Securities Division

News

The Commission ordered Thomas P. Madden of Chandler to pay $3,284,792 in restitution and a $75,000 administrative penalty for defrauding at least 79 people in connection with selling them stock in start-up companies.

The Commission found that Madden told several people the company stock was bargain priced with likely upward potential while for several years the companies actually had no revenues and large financial losses. Additionally, the Commission found Madden did not disclose to potential investors that prior investors had sued him for selling worthless stock and that he had frequently borrowed money from stock purchasers but failed to repay the loans in full.

In settling this matter, Madden neither admits nor denies the Commission's findings, but agrees to the entry of the consent order. For more details about this case, view the full text of the Commission's order S-21042A-18-0059.

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