Stephen Durland, of Greensboro, North Carolina, has received a sentence
of two years and nine months after his alleged involvement in a securities
fraud scheme. Durland pleaded guilty earlier this year to counts of securities
fraud, conspiracy to commit securities fraud, and falsifying records.
Durland had been CFO of Fremont-based Pegasus Wireless Corp., which later
moved to West Palm Beach, Florida. According to officials, Durland allegedly
created fake promissory notes to represent fake debt, and then issued
shares. Durland, working with former Pegasus CEO Jason Knabb, allegedly
sold the shares to friends, family, and other investors. Durland and Knabb
are said to have brought in millions in this fashion, and they have been
accused of using most of the cash for their own purposes. Knabb is expected
to be sentenced in November after also pleading guilty to similar securities
Prosecutors have also alleged that the securities fraud ended up diluting
Pegasus Wireless' stock, led to the company's later bankruptcy,
and caused millions of dollars in losses for their clients.
At Meyer Wilson, we are experienced
FINRA lawyers who can represent victims of investment fraud, stock scams, and
Ponzi schemes in
stockbroker mediation, arbitration, and litigation anywhere in the nation. We are proud to have
recovered millions of dollars in losses for our own clients, and look
forward to helping you.