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Florida man wanted on Securities Act violations turns self in to Madison County Sheriff’s Department

Published 2:33pm Thursday, November 18, 2010

A Florida man wanted on Securities Act violations has become the third man arrested in connection with a seven-count indictment that was handed down in December 2009.

Patrick Michael Daleiden, 42, whose last known address was Satellite Beach, Fla., turned himself in to the Madison County Sheriff’s Department and was arrested on Nov.  for alleged violations of the Alabama Securities Act.

Daleiden’s was subsequently released under $70,000 bond.

Madison County District Attorney Robert L. Broussard and Joseph P. Borg, director of the Alabama Securities Commission, announced the arrest Nov. 15.

A Madison County grand jury charged Daleiden with two counts of sale of unregistered securities; one count of sale of securities by an unregistered agent; and, four counts of securities fraud involving material misrepresentations or omissions.

The charges were the result of an ASC Enforcement Division investigation into a failed industrial park development deal in Choctaw County, in which at least three Alabamians invested in excess of $400,000 with Daleiden’s company, Starboard Capital, Inc., headquartered in Satellite Beach.

Alabama investors were allegedly issued promissory notes, investment contracts and other investment instruments by Daleiden in return for their money, which was purportedly to be used for the development of a business and industrial park in Butler.

The ASC investigation revealed no evidence to support that investor funds were used as represented and that Daleiden allegedly used solicited money for personal benefit unrelated to the stated purpose.

ASC Registration Division records indicate that neither Daleiden, Starboard Capital, Inc., nor the securities he allegedly offered and sold were registered with the ASC as required by law.

Two individuals associated with Daleiden’s company, Matthew Arnold Gibson, a Madison County resident, and Bruce J. Mabey, a resident of Salt Lake City, Utah, were arrested and charged in connection with the same case earlier this year.

The ASC cautions potential investors to thoroughly scrutinize and research any investment opportunity or offer. Contact the ASC with inquiries concerning securities broker-dealers, agents, investment advisers, investment adviser representatives, financial planners, registration status of securities or debt management programs, to report suspected fraud or to obtain consumer information. The ASC provides free investor education and fraud prevention materials in print, on our website and through educational presentations upon request.

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