Articles Tagged with pump-and-dump

In a second superseding indictment to an ongoing Texas securities fraud probe, the US Attorney’s Office for the Southern District of Texas has brought criminal charges again against several people accused in an alleged multimillion dollar pump-and-dump scam. This latest indictment expands on the original criminal charges, which involved Chimera Energy Corp. stock and an alleged $6M scam.

With this latest indictment, investors of 12 stocks were allegedly defrauded of more than $25M. Prosecutors said that the scam bilked investors in different companies through the use of fraudulent trading practices, the publication of misleading and false information via ads and press releases, and the circumvention of Securities and Exchange Commission reporting requirements.

Those charged in this latest Texas securities indictment include Andrew Ian Farmer, Charles Earl Grob, Carolyn Price Austin and Eddie Douglas Austin of Houston, John David Brotherton of League City, and Scott Russel Sieck of Florida for the parts they played in the alleged conspiracy fraud involving a dozen stocks, including Chimera Energy Corp. stock. The latter was the stock involved in the initial criminal indictment that brought charges against both Farmer and Thomas Galen Massey, also a Houston resident.

The US Securities and Exchange Commission has filed an administrative case against Windsor Street Capital and John D. Telfer, its ex-anti-money laundering officer. The regulator’s enforcement division claims that the New York-based broker dealer did not file Suspicious Activity Reports for $24.8M of suspect transactions, including those connected to an alleged pump-and-dump scam.

The regulator claims that Windsor Street Capital, at the time known as Meyers Associates LP, and Telfer should have been aware of the suspect circumstances involving a lot of these transactions and conducted a probe—in particular, into transactions involving William Goode and Raymond Barton. These men are microcap stock financiers accused of running a multi-million dollar pump-and=dump scam.

The SEC has filed separate charges against them, as well as against Kenneth Manzo, Matthew Briggs, and Justin Sindelman. The five of them are accused of acquiring shares of dormant shell companies that were supposed to be part of the dietary supplement industry, falsely marketing products and news related to the company, and then dumping the shares onto the market for investors to buy at inflated rates.

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