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State Orders Company to Stop Selling Securities

2 November 1998

State Orders Company to Stop Selling Securities


    TAMPA, Fla.--Nov. 2, 1998--The Department of Banking and Finance (DBF) has ordered a Tampa company to cease selling unregistered securities.
    The Comptroller's regional office in Tampa entered into a joint agreement with Louis W. Spiro and Dealer Leasing & Sales Inc. to stop offering and selling securities that are not exempt from registration under Florida Statute, Chapter 517, as well as operating as an unregistered broker.
    The Comptroller's regional office led a joint investigation, which included representatives of the Federal Bureau of Investigation and the U.S. Attorney's office. The investigation focused on potential violations of both federal and Florida securities laws. It revealed Spiro and Dealer Leasing were selling promissory notes, reportedly to fund a business operation as a wholesale buyer and seller of automobiles.
    Between March and June 1996, Spiro and Dealer Leasing sold promissory notes from their St. Petersburg offices raising at least $788,000. Investments ranged from $25,000 to $77,000. They represented to investors that the investments would have collateral through the company's automobile inventory, and repayments would be made from the net proceeds of inventory sales. However, a significant portion of the money raised was diverted to personal use and other unrelated business activities.
    On Oct. 21, 1998, Spiro pled guilty in Federal District Court to charges of securities fraud, mail fraud, and interstate transportation of stolen property. Spiro still faces sentencing on federal criminal charges.