SEC v. Diane D. Dalmy, Esq. (unregistered distributions, 2016)

Judgment entered

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In July 2016 an SEC administrative law judge permanently disqualified attorney Diane D. Dalmy from appearing or practicing before the Commission, based on a 2015 Northern District of Illinois finding that she was liable under Securities Act Section 5 for her role in selling unregistered Zenergy shares. The initial decision is a Rule 102(e) disqualification, not a finding that she manipulated a price.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

the Securities and Exchange Commission announced this matter on July 29, 2016 as release 3-17020. The respondents named are Diane D. Dalmy, Esq. (1 individual, 0 entities). The action was brought in the SEC administrative law judge.

The decision rests on the district court's finding that Dalmy sold unregistered securities, including through Rule 144 opinion letters for assignees of a convertible-debt arrangement tied to a shell company; the same court record describes a penny-stock promotion by others, in which assignees generated $4.4 million, but Dalmy is not found to have promoted or traded to manipulate. The initial decision would become final on the Commission's order of finality. This library tags the matter as unregistered distributions.

The conduct is recorded against equities, with OTC identified in the release.

The action was dismissed. We keep dismissed matters in the library precisely so that the outcome is visible alongside the original allegation.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Unregistered distributions — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2016-07-29 Initial decision

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• Initial decision (ID-1042)
• Order instituting proceedings
• Finality order

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.