Man Arrested For Securities Violations
An Etowah County man is indicted for alleged securities violations. According to Etowah County District Attorney Jimmie Harp and the Alabama Securities Commission, 30-year-old Derek Neal York formerly of Rainbow City was arrested for alleged violations of the Alabama Securities Act. The indictment alleges that York converted approximately $620,000 of an Alabama victim’s money to be used for the promotion of a movie production company located in California, instead of investing the money according to the victim’s wishes. York also allegedly sold securities valued at approximately $312,000 to a Texas victim to be invested in a Canadian energy company and in York’s Alabama business, the Messier Corporation. None of the investment offerings sold were registered as securities with the Alabama Securities Act, as required by law. It is also alleged that York received $87,000 in commission payments from the victims’ investment funds. These commission payments were not disclosed to the victims. York turned himself in to Etowah County law enforcement officials based on an arrest warrant issued after a May Etowah County Grand Jury returned a seven-count indictment. York was released on $105,000 bond with arraignment scheduled for May 27th.