Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
Kaplan Elliot M
  2. Issuer Name and Ticker or Trading Symbol
DIGITAL ALLY INC [k9vrch$i]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)
7311 WEST 130TH STREET, SUITE 170
3. Date of Earliest Transaction (Month/Day/Year)
06/12/2009
(Street)

OVERLAND PARK, KS 66213
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)
2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)
4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)
5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 06/12/2009   J(1)   43,532 A $ 2.35 (1) 178,532 D  
Common Stock 06/12/2009   J(2)   43,532 D $ 2.35 (2) 135,000 D  

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)
2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)
5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)
6. Date Exercisable and Expiration Date
(Month/Day/Year)
7. Title and Amount of Underlying Securities
(Instr. 3 and 4)
8. Price of Derivative Security
(Instr. 5)
9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Stock Option (Right to Buy) $ 1.6 06/12/2009   M     43,532 (2) 10/01/2007(3) 03/01/2017 Common Stock 43,502 $ 0 341,901 D  
Stock Option (Right to Buy) $ 1.6 06/12/2009   F     92,869 (2) 10/01/2007(3) 03/01/2017 Common Stock 92,869 $ 0 249,032 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Kaplan Elliot M
7311 WEST 130TH STREET, SUITE 170
OVERLAND PARK, KS 66213
  X      

Signatures

 Elliot Kaplan   06/16/2009
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Transaction represents common stock acquired by the Reporting Person, upon the cashless exercise of stock options reflected in Table II of this Form 4.
(2) The Reporting Person pledged certain stock options to secure the Reporting Person's promissory note with a private lender. The note was due and the lender foreclosed on the collateral. The lender exercised a total of 136,401 stock options, on a cashless basis, at the market price of $2.35 per share, less an exercise price of $1.60 per share, and received 43,532 shares of common stock in payment of the amount owing under the note. This transaction was initiated by the lender and not by the Reporting Person. The lender deemed the price of the common stock to be $2.35 per share, which was the closing market price on June 12, 2009, the date of the foreclosure and transfer.
(3) The stock options were granted to the Reporting Person on March 1, 2007; 66,667 options vested on October 1, 2007, 66,666 options vested on March 1, 2008 and 3,068 options vested on October 1, 2008 pursuant to the 2007 Stock Option and Restricted Stock Plan.

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