Former Rainbow City man arrested on securities charges

Derek Neal York

A former Rainbow City man has been arrested for alleged violations of the Alabama Securities Act after an Etowah County grand jury returned a seven-count indictment against him.

30 year old Derek Neal York, who currently lives in Pelham, turned himself in May 14, according to a statement from Etowah County District Attorney Jimmie Harp and Alabama Securities Commission Director Joseph Borg. An arrest warrant had been issued following the grand jury indictment.

York was released on $105,000 bond. His arraignment is scheduled for May 27.

The indictment charges him with one count each of sale of unregistered securities, sale of securities by an unregistered agent and acting as an unregistered investment adviser for compensation. The charges are Class C felonies, punishable upon conviction by from one year and one day to 10 years’ imprisonment and a $15,000 fine per charge.

York also is charged with three counts of fraud in connection with the sale of securities and financial exploitation of an elderly person in the first degree. The fraud and exploitation charges are Class B felonies, carrying a punishment upon conviction of from two to 20 years’ incarceration and a $30,000 fine per charge.