LOS ANGELES — A Newport Beach man accused of helping convicted swindler Steven D. Wymer in a $209-million pyramid scheme has settled a lawsuit by promising not to violate securities laws in the future, the Securities and Exchange Commission said Tuesday.
The SEC had accused securities broker Daniel L. Osborn, 42, of overcharging clients by $319,613 and giving about $200,000 of that money to Wymer. The agency also accused Osborn of overbilling Wymer's company by $47,196 for U.S. securities. In addition, the agency contended, Osborn failed to disclose that Wymer had given him $310,000 to establish Osborn's company, DLO Securities Inc. in Irvine.
The SEC said it will try to find Osborn's assets to help repay Wymer's victims, mainly cities and public agencies. "He says that he has no ability to pay any money," said James A. Howell, an SEC trial attorney.
In agreeing not to violate anti-fraud laws and other securities laws, Osborn did not admit to any of the SEC's allegations.