Blount man indicted on 12 counts

Following a four-year investigation, a former Blount County man is in custody on charges of violating provisions of the Alabama Securities Act.

“Basically, it was the Blount County version of the Bernie Madoff Ponzie scheme,” said Blount County District Attorney Tommy Rountree. “He would call on people and promise extremely large profits if they would invest in his operations.”

David Ray Pinyan, formerly of Blount County, was arrested on May 4 by Seviereville and Pigeon Forge, Tenn., law enforcement officials, according to a press release from the Alabama Securities Commission (ASC).

“He was able to flim-flam a lot of people in Blount County out of hundreds of thousands of dollars,” Rountree said. 

The case caught Rountree’s attention in 2006. He contacted the ASC for help. “They provided some skilled investigators who are highly trained in white-collar crime,” Rountree said.

Rountree said Pinyan has waived extradition and will be transferred to Blount County and held without bond.

“Pinyan’s arrest stems from a 12-count indictment returned by an April 2010 session of the Blount County Grand Jury,” the press release stated.

Pinyan is charged with one count each of sale of an unregistered security, sale of a security by an unregistered agent and scheme to defraud in connection with the offer or sale of a security. Pinyan was also charged with three counts of making an untrue statement of material fact in connection with the offer or sale of a security. Charges are a Class C felony under Alabama law. Additionally, Pinyan was charged with six counts of theft of property by deception, first degree, a Class B felony, the press release stated.

“Everyone is presumed innocent until convicted,” Rountree said. “At this point we don’t know what the result will be, but I feel reasonably sure we can get a conviction on him.”