Daniel Joseph Mackle Sr., of Hackensack, New Jersey, the owner of Silver Edge Financial LLC, has been barred by Securities and Exchange Commission (SEC) from being a stockbroker or investment advisor representative because Mackle and his company acted as unregistered brokers when marketing and selling Silver Edge Fund series interests to investors. In the Matter of Daniel J. Mackle Sr. and Silver Edge Financial LLC, Administrative Proceeding File No. 3-21325 (March 3, 2023).
According to the Order, Mackle is the owner of Silver Edge Financial LLC, a company formed in December of 2018. The regulator states that Mackle managed all of the operations at Silver Edge Financial LLC and created Silver Edge Funds. Mackle also hired sales representatives to aid him in selling securities to accredited investors.
Since 2019, Mackle, his company, and six of its representatives collectively sold interests in funds. Each series represented an interest in the shares of a pre-IPO company. SEC found that the assets in the series consisted of interests in shares of entities that were planning to go public or otherwise experience a liquidity event within five years.
The regulator also states that Mackle provided his sales team with a list of potential accredited investors for his sales team to cold call. The company furnished investors with information and investment documentation. According to the Order, Mackle would even follow up with investors concerning investment opportunities through Silver Edge.
More than $65,000,000.00 had been raised from investors by Mackle and company. In fact, the company earned a four percent management fee, a ten percent placement agent fee, and a three percent administrative fee. All the while, SEC notes that neither the company nor Mackle registered with SEC. Therefore, SEC found that Mackle violated Securities Exchange Act of 1934 Section 15(a).
Financial Industry Regulatory Authority (FINRA) Public Disclosure shows that Mackle is referenced in three customer initiated investment related disputes concerning Mackle’s conduct while associated with securities broker dealers. On February 6, 2002, a customer initiated investment related complaint involving Mackle’s conduct was settled for $20,000.00 in damages based upon allegations that Mackle mismanaged investment accounts when Mackle was associated with Barron Chase Securities Inc.
On July 29, 2021, a customer filed an investment related FINRA securities arbitration claim involving Mackle’s conduct in which the customer requested $550,000.00 in damages based upon allegations that Mackle engaged in unauthorized and excessive trading, made misrepresentations of material fact, and failed to supervise certain registered representatives in connection with the recommendation and sale of over the counter equities, common stocks, and preferred stocks during the time that Mackle was associated with Garden State Securities Inc. FINRA Arbitration No. 21-01590.
Mackle is also referenced in a customer initiated investment related FINRA securities arbitration claim in which the customer requested $1,800,000.00 in damages based upon allegations that Mackle made unsuitable recommendations to the customer, churned the customer’s account, and breached his fiduciary duties to the customer in connection with the sale of over the counter equities, preferred stocks and common stocks at Garden State Securities Inc. FINRA Arbitration No. 22-00611 (April 25, 2022).
Mackle’s registration with Garden State Securities Inc. was terminated on March 6, 2019.
