Former Blount County man pleads guilty to securities fraud

David Ray Pinyan, formerly of Blount County, pleaded guilty this week in Montgomery Circuit Court to a single count of fraud in connection with the the sale of securities, according to a release from Blount County District Attorney Pamela Casey and Alabama Securities Commission (ASC) director David Borg.

Pinyan, now a resident of Tennessee, had been in jail since November on a 12-count indictment handed down by a Blount County grand jury in April 2010. He was arrested on May 4, 2010, by Sevierville and Pigeon Forge law enforcement officials and later extradited to Alabama to face charges that he violated provisions of the Alabama Securities Act.

An investigation by the ASC revealed that – beginning in May 2006 and continuing through August 2007 – Pinyan allegedly used schemes centered around various land development opportunities and transactions involving the buying and selling of automobiles. ASC records revealed that neither Pinyan nor the investment opportunities he offered and sold were registered with the ASC as required by law.

Circuit Judge David Kimberly sentenced Pinyan to to 10 years in prison, suspended, and placed him on five years probation. He was given credit for jail time already served.

The plea agreement made by prosecutors, after consultation with the victims, considered that Pinyan would be more capable of meeting his obligations toward restitution if allowed to serve the balance of his sentence on probation.