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Regulators Accuse DBSI of Securities Fraud
Posted by: Jeffrey B. Kaplan
August 18, 2009

Idaho securities regulators and an arm of the U. S. Justice Department have accused Delaware corporation DBSI of securities fraud, including running a Ponzi scheme and selling unregistered securities. "It appears that certain of [DBSI's] officers and directors, including (President) Douglas Swenson, have engaged in misconduct, fraud and mismanagement which collectively caused damage to [DBSI's] investors and creditors," a U.S. authority said. Investors who bought DBSI investments upon the recommendation of a broker or brokerage firm may be able to recover their investment losses through individual Financial Industry Regulatory Authority (FINRA) securities arbitration claims against the brokerage firms that sold the investments.

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