MADISON COUNTY, AL (WAFF) - A Madison County grand jury has indicted a man in connection to an alleged securities fraud scheme.
Edwin Eugene Blalack was arrested on Nov. 14 by the Madison County Sheriff's Office. The arrested stemmed from a November 2017 grand jury indictment that charged him with 17 violations of the Alabama Securities Act.
The grand jury indicted Blalack with seven counts of fraud in connection with the sale of securities, five counts of sale of unregistered securities, and five counts of sale of securities by an unregistered agent.
Blalack was subsequently released on a $5,000 bond.
According to the Alabama Securities Commission, the alleged scheme involved illegal securities transactions involving the sale/ownership of "common stock" and/or "founders stock" in Trirox Inc., a Delaware-registered corporation with a physical address in Huntsville, to multiple investors. Blalack also allegedly misappropriated investors' funds for his personal benefit instead of investing said funds for the benefit of the company and its investors. ASC reports that their records revealed that Blalack was not registered with the Commission to lawfully offer and/or sell securities within, into or from Alabama as required by law.
The securities fraud charges are Class B felonies, punishable by possible imprisonment of from two to 20 years and up to a $30,000 fine per charge upon conviction. The securities registration charges are Class C felonies, punishable by possible imprisonment of from one year and one day to 10 years and up to a $15,000 fine per charge upon conviction.
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