SEC sues Costa Mesa man

Shea Silva, 27, is accused of cheating investors out of more than $5 million since November 2001.The Securities and Exchange Commission announced Thursday that the agency filed a lawsuit against a Costa Mesa man who the commission alleges cheated investors out of more than $5 million.

The lawsuit names Shea Silva and a company called Allied Capital Management Inc. as defendants. Silva is listed in the filing as a 27-year-old Costa Mesa resident and sole officer, director and shareholder of Allied Capital Management.

The commission also accuses Silva of committing securities fraud through two other companies called Sunrise Energy Inc. and Blue Marlin Energy Inc.

The alleged fraud started in Nov. 2001, according to the lawsuit. With Sunrise, Silva is accused of raising $4.4 million through securities offerings that were not registered with the commission.

The lawsuit states that Silva and others used “boiler room” techniques to pressure investors into investing in the oil and gas industry.

The commission believes Silva only invested about 20% of the money raised through Sunrise in the oil and gas industry and skimmed $1.4 million for himself.

The commission accused Silva of engaging in similar activity with Blue Marlin and Allied Capital Management.

The lawsuit would force Silva to give up anything he gained through the alleged fraud and pay civil penalties.

Silva could not be reached for comment Thursday.

-- Andrew Edwards