Sandpoint Promoter Sued In Alleged Stock Options Ponzi Scheme
State Seeks Return of More Than $2 Million For Defrauded Victims
Boise, Idaho - The Idaho Department of Finance is seeking the return of more than $2 million allegedly bilked from investors by a retired Sandpoint real estate agent.
A civil lawsuit filed by the Department of Finance in Bonner County District Court accuses Dale E. Lowell - who recently moved to Washington - of selling unregistered investment contracts to at least 23 investors and misrepresenting and omitting material facts about the contracts. More specifically, Dale Lowell is alleged to have raised money for the purpose of stock options trading and that Dale Lowell:
misrepresented that the investment was risk free and otherwise backed by other personal assets of Dale Lowell,
misrepresented that he had a strong background in successful options trading when, in reality, Lowell lost money trading securities every year since 2002,
failed to disclose to investors that their funds might be used to make ponzi payments to earlier investors and for the personal benefit of Dale Lowell and his family, and
later admitted in an email to investors that "99.99% of all representations by me have evolved into being 100% false…I have lied and misrepresented everything."
The State seeks a Court order permanently enjoining Dale Lowell from further violations of the Idaho Uniform Securities Act and seeks to place restrictions on future business activities. The department seeks the return of the investors' money and financial penalties for each violation. More than $300,000 is sought from Luke Lowell for improper transfers made to him by Dale Lowell. Many of the investors reside in northern Idaho.