Man, daughter charged with securities fraud
A Shelby County man, along with his daughter and a Michigan man, have been arrested and charged with violating the Alabama Securities Act.
Paul Haskell Lane Jr. of Pelham; his daughter, Katherine Hope Lane of Jefferson County; and Michael Pahl of Jackson, Mich., were all indicted by the Shelby County Grand Jury in January for their alleged involvement in a scheme to solicit investments for the purpose of funding a phony lawsuit.
The trio allegedly collected more than $500,000 from several out-of-state victims, according to a news release issued by the Alabama Securities Commission. Investor funds, along with an additional percentage, were supposedly to be reimbursed after the phony lawsuit was settled.
Paul Lane turned himself in to the Shelby County Jail on Jan. 23, and was later released on $80,000 bond. Katherine Lane was arrested by Jefferson County sheriff’s deputies on Jan. 22, and was later released from the Shelby County Jail on $10,000 bond.
Paul Lane has been charged with one count each of selling unregistered securities and selling of securities by an unregistered agent, four counts of securities fraud and two counts of first-degree theft. Lane’s charges include previous charges from a November 2007 arrest warrant issued by the securities commission.
Katherine Lane has been charged with one count of securities fraud. The Lanes’ arraignment date has not been set.
Pahl was arrested by Jackson, Mich. police on Feb. 6. Pahl refused to waive extradition during his Michigan arraignment and was released from jail on a $2,500 surety bond. The securities commission will pursue extradition against Pahl to expedite court proceedings in Alabama.
Pahl has been charged with one count each of selling unregistered securities and selling of securities by an unregistered agent.