Davidson charged with three felonies including fraudulent practi - KRTV News in Great Falls, Montana

Davidson charged with three felonies including fraudulent practices

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(GREAT FALLS) Bruce Davidson has been charged with three felonies for fraudulent practices, failure to register as a securities salesperson, and theft by embezzlement after embezzling a total of $20,000 from two people.

According to court documents, Davidson encouraged an acquaintance in April to invest mortgage futures through an arrangement he said he had with his brokerage account.

Davidson told his acquaintance the money would first go through his personal checking account and then to his brokerage account.

Court documents state Davidson encouraged the acquaintance to invest in secret and the person then invested $5,000.

Davidson transferred the $5,000 to a trust, which he later admitted was controlled by a cousin to whom he owed money.

According to court documents, a second person invested $15,000, also in April, in what Davidson said was an investment in properties in Washington.

Davidson informed the person that the investment involved the D.A. Davidson family.

The person’s investment did not go to properties in Washington but to the trust to repay Davidson’s cousin.

According to a pre-trial agreement, Davidson will pay restitution to the two victims plus interest.

The pre-trial agreement also states that Davidson agrees to plead no contest to fraudulent practices and will essentially have three years of probation.

In a separate case settled in September, Davidson was ordered to pay a total of $170,526 to Ibis Development, a company Davidson organized with Brin Grosfield located at 117 2nd Avenue North in 2004.

According to court documents, Davidson Architecture executed a lease agreement for commercial space at the address in 2005.

The lease agreement provided a base rent every month for 15 years, which Davidson defaulted on. In September of 2016, he was given a 30-day-notice to cure the defaults or vacate the premises.

The documents continue that Davidson knowingly and willingly failed to timely pay Ibis and could provide no evidence of claims for leasehold improvements except for invoices from 2005, 2008, and 2009.

Davidson owed Ibis $77,839 in damages before October 12, 2016 and $18,239 for failing to vacate the premises by that date.

Davidson was ordered to pay an additional $36,479 in treble damages, which tripled damages owed to a plaintiff.

Davidson was also ordered to pay the plaintiffs costs and reasonable lawyer fees as well as subtenant rent at Photo Solutions resulting in a total of $170,526. 

The case was settled on September 21st. 

D.A. Davidson Companies sent the following information to KRTV: 

  • Bruce Davidson is not affiliated with D.A. Davidson Companies and has never been an employee of the firm.
  • D.A. Davidson had no involvement in the conduct that is the subject of the charges included in the state’s filing or the pre-trial agreement that Bruce Davidson entered into.
  • Based on the state’s filing, no D.A. Davidson & Co. accounts were utilized.
  • D.A. Davidson has no information beyond that which is included in the public filings.
  • Further, Ian Davidson, who is our company’s Chairman Emeritus, and his immediate family were not involved in Bruce Davidson’s conduct.
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