Ohio Investment Advisor Pleads Guilty to Securities Fraud

By Aaron Poehler

Published on August 20, 2007

David A. Dadante, 53, admitted misleading investors in his IPOF Fund by falsely claiming to be receiving tips from Donald Trump's financial advisor. Using investors' money to establish brokerage accounts at Baltimore's Ferris Baker Watts investment banking firm, Dadante then collaborated with others to illegally manipulate the stock price of Georgia corporation Innotrac. Dadante's scheme was uncovered when IPOF Fund investors discovered that IPOF Fund was the majority stockholder in Innotrac.

Dadante also admitted using his clients' money to finance gambling trips to Las Vegas and to purchase a luxury home in Cleveland's wealthy Gates Mills suburb.

Under the terms of the plea agreement, Dadante also admitted being assisted by others in the scheme and agreed to provide information to federal officials in an ongoing investigation. Dadante's former Ferris broker Stephen Glantz is reportedly one focus of this investigation. Earlier this year, several Ferris executives stepped down or took leaves of absence from the corporation in response to an internal Ferris investigation initiated after the U.S. Securities and Exchange Commission and Justice Department reported their own ongoing investigation.

Ferris has declined to comment on Dadante's plea, noting that Dadante was a customer and not a Ferris employee.

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