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Alleged Securities Fraud May Have Led to Bankruptcy and Investor Loss

David P. Meyer

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 fraud charges.

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.