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New criminal charges filed for man jailed in securities case
A Denver, N.C., man and his financial company collected $1.3 million from investors and spent most of the money on jewelry, personal expenses and payments to other investors, according to new criminal charges and a lawsuit from a federal regulatory agency.
State authorities charged Sean Mescall, 30, Wednesday with eight felony counts, including securities fraud.
According to the federal suit, filed in Charlotte on Tuesday by the U.S. Commodity Futures Trading Commission, Mescall and his company, Capitalstreet Financial LLC, solicited the money from nearly 70 investors, starting in September 2006.
Mescall, who made numerous phone calls pitching his alleged scheme, claimed to be a successful trader of foreign currency and promised returns of 60 to 80 percent per year, the lawsuit says. Yet he only deposited about $280,000 of the money into trading accounts, it says. Mescall could not be reached for comment Wednesday.
His lawyer, Lawrence R. Gelber of New York, said he knew Mescall had been arrested but declined to comment further.
He lost most of that money in unsuccessful trading and misappropriated about $875,000 for personal use or to make “profit payments” to customers, the suit says. Among other things, Mescall bought more than $20,000 worth of jewelry and paid about $110,000 to rare coin and bullion dealers, the CFTC said.
The N.C. Secretary of State's Office launched its investigation earlier this year after receiving complaints from investors in Ohio, New York and Illinois. Authorities from the Catawba County Sheriff's Office, Charlotte-Mecklenburg Police Department and Cornelius Police Department also helped with the case.
Mescall was charged with four counts of securities fraud, three counts of obtaining property by false pretenses and one count of running an unlawful telephone room. He was being held Wednesday in Mecklenburg jail under a $300,000 secured bond. Kirsten Valle
EpiCentre condo buyers invited to meeting
A would-be condo buyer in the stalled 210 Trade condo tower is organizing a meeting today for others who placed deposits on units.
Mike Ross and his wife, Helen, said they hope to meet with other people who paid deposits for condos in the tower slated to rise above the EpiCentre entertainment complex in uptown. The project has been stalled since February 2008 in a legal dispute between its developer and the EpiCentre's.
Construction on the condo tower stopped with two floors built.
The goal, Ross said, is for stakeholders in the unfinished project to share information and discuss hiring a lawyer.
Ross said he expects between 25 and 30 people to attend the meeting, which will be held at 7 p.m. at the Atrium at Two Wachovia, 301 N. Tryon St.
For more information, contact Ross at 704-369-7900. Kerry Hall Singe
