Madison County business owner pleads guilty to securities fraud

According to the Alabama Securities Commission, a Madison County business owner pleaded guilty to five counts of securities fraud.

Posted: May 10, 2019 9:07 PM

The Alabama Securities Commission says a Madison County business owner, Edwin Blalack, pleaded guilty on Thursday, May 2, 2019, to five counts of securities fraud.

The commission says these offenses are Class B felonies, punishable by no less than two years but no more than 20 years in prison, and a maximum fine of $30,000. Blalack's sentencing hearing is scheduled for August 22, 2019.

Below is a statement released on Friday by the Alabama Securities Commission:

MONTGOMERY, ALABAMA (May 10, 2019) Robert L. Broussard, District Attorney for the 23rd Judicial Circuit, Madison County, Alabama; and Joseph P. Borg, Director of the Alabama Securities Commission (ASC) announced that on May 2, 2019, Edwin Eugene Blalack (Blalack) pled guilty before the Honorable Circuit Court Judge Ruth Ann Hall to five counts of Securities Fraud. The offenses are Class B felonies, punishable by not less than two years, but no more than 20 years in prison, and a fine not to exceed $30,000. A sentencing hearing will take place on August 22, 2019.

According to the plea, between October 2014 through March 2015, Blalack founded a company called The TriRox Group, Inc. based in Madison County, Alabama. Blalack represented that the company would engage in the business of enhancing athletic performance through the use of a unique algorithm. After incorporating the company, which existed in name only, Blalack solicited investments and offered employment to five victim investors. Blalack falsely represented to the victim investors that he personally contributed $500,000 in start-up capital for the company, that he had a functioning algorithm that would enhance athletic performance and abilities of future TriRox’s customers, that there was more than enough operating capital to fund TriRox until revenue-producing contracts were acquired, and that TriRox was soon to merge with a legitimate and successful company in the Madison County area. Blalack failed to tell victim investors that he had not been gainfully employed in over eight months and investment funds would be spent on his personal expenses, personal vacations, and to repay other investors. Blalack’s actions not only caused a loss to the five victims totaling $74,500 but exacerbated the impact of the damage to the victims because they resigned from their current jobs to go work at TriRox, and therefore the victims not only lost their investment, but also their jobs.

As part of the plea agreement with the State of Alabama Securities Commission, Blalack agreed that the appropriate sentence would be two years’ incarceration with the Alabama Department of Corrections, to be followed by a period of probation to be determined by the Court. Blalack also agreed that his sentence should include an order that he make complete restitution of $74,500 to the victim investors. Furthermore, Blalack consented to a permanent bar from participating in the securities industry within the State of Alabama.

Joseph P. Borg, Director of the Alabama Securities Commission said, “Alabama investors have a right to receive truthful and accurate information about the businesses they invest with, even when they are employee shareholders. In his case, Blalack’s employees lost not only their investment money, but also their former and current employment.”

Blalack’s plea is a result of a November 2017 indictment by the Madison County Grand Jury. The seventeen count indictment charged Blalack with seven counts of Securities Fraud, five counts of Sale of Unregistered Securities, and five counts of Sale of Securities by an Unregistered Agent.

The ASC cautions potential investors to thoroughly scrutinize and research any investment opportunity or offer. Contact the ASC with inquiries concerning securities broker-dealers, agents, investment advisers, investment adviser representatives, financial planners, registration status of securities or debt management programs, to report suspected fraud or to obtain consumer information. The ASC provides free investor education and fraud prevention materials in print, on our website and through educational presentations upon request.

Huntsville
Clear
69° wxIcon
Hi: 93° Lo: 69°
Feels Like: 69°
Florence
Clear
71° wxIcon
Hi: 97° Lo: 72°
Feels Like: 71°
Fayetteville
Clear
68° wxIcon
Hi: 93° Lo: 67°
Feels Like: 68°
Decatur
Clear
69° wxIcon
Hi: 93° Lo: 68°
Feels Like: 69°
Scottsboro
Broken Clouds
70° wxIcon
Hi: 92° Lo: 68°
Feels Like: 70°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 94827

Reported Deaths: 1674
CountyConfirmedDeaths
Jefferson12486232
Mobile9420204
Montgomery6449148
Madison516130
Tuscaloosa405769
Baldwin338023
Unassigned319060
Shelby316432
Marshall306034
Lee258844
Morgan229517
Etowah204128
DeKalb174513
Calhoun167213
Elmore167238
Walker149864
Houston134812
Dallas130523
St. Clair128915
Russell12772
Limestone126113
Franklin123820
Cullman118912
Colbert114113
Lauderdale112315
Autauga105021
Escambia104416
Talladega96713
Jackson9244
Tallapoosa84179
Chambers83538
Dale80223
Blount7593
Butler75635
Chilton7456
Coffee7365
Covington71620
Pike6877
Lowndes56724
Barbour5655
Marion56224
Marengo53614
Clarke4949
Hale46426
Bullock45011
Winston44011
Perry4364
Wilcox41410
Bibb4134
Monroe4084
Randolph39410
Conecuh37810
Pickens3779
Sumter36018
Lawrence3321
Macon32013
Washington32012
Crenshaw3123
Choctaw27712
Cherokee2587
Greene24911
Henry2493
Geneva2480
Clay2375
Lamar2122
Fayette1835
Cleburne1251
Coosa1012
Out of AL00

Tennessee Coronavirus Cases

Confirmed Cases: 116350

Reported Deaths: 1186
CountyConfirmedDeaths
Shelby22212300
Davidson20001211
Rutherford629853
Hamilton588449
Knox429837
Williamson340525
Sumner331672
Unassigned30368
Out of TN283116
Wilson219023
Bradley181712
Montgomery181513
Sevier17916
Putnam167716
Trousdale15786
Robertson150619
Hamblen134614
Blount12229
Maury11597
Tipton11559
Washington11312
Madison98415
Bedford90111
Sullivan89512
Hardeman85815
Macon85513
Lake7650
Loudon7053
Bledsoe6861
Dickson6521
Fayette6528
Anderson6516
Gibson6444
Dyer5937
Cheatham5697
Lawrence5276
Jefferson5253
Henderson5172
Rhea5171
McMinn50920
Obion4904
Coffee4823
Warren4794
Carter4735
Lauderdale4558
Hardin4447
Cocke4392
Haywood4356
Smith4294
Roane4232
Greene4187
Hawkins4167
Cumberland3986
Monroe3979
Giles36913
Weakley3633
McNairy3515
DeKalb3312
Franklin3024
Marshall2753
Carroll2723
Lincoln2681
Crockett2534
Henry2480
Hickman2480
White2465
Claiborne2420
Campbell2291
Johnson2250
Wayne2242
Marion2134
Chester2062
Grainger1890
Decatur1883
Polk1853
Overton1551
Unicoi1480
Union1410
Cannon1360
Benton1261
Humphreys1183
Jackson1121
Scott1100
Grundy1082
Sequatchie1000
Meigs990
Morgan981
Fentress790
Hancock771
Perry770
Stewart740
Clay710
Lewis671
Houston560
Moore550
Van Buren350
Pickett301

Community Events