A man accused of helping orchestrate a stock-fraud scheme involving Belize-based Cynk Technology Corp., which surged briefly to a market value of $6 billion last year, was charged by U.S. officials with conspiracy.
Gregg Mulholland, also known as “Stamps,” and “Charlie Wolf,” was arrested Tuesday as part of a probe by securities regulators and federal prosecutors in Brooklyn, New York, into alleged stock fraud involving companies based in the popular Central American tax haven. He is also accused of laundering about $300 million in profits through offshore law firms.
The arrest, in Phoenix, follows charges brought last year in Brooklyn against Robert Bandfield, a U.S. citizen who was accused of scheming with five other executives and group of offshore brokerage entities to set up sham companies and facilitate penny-stock fraud, tax evasion and money laundering. Bandfield has pleaded not guilty.
Mulholland, a U.S. and Canadian citizen, is accused of secretly owning and controlling one of the brokerages, Panama City-based Legacy Global Markets S.A., from about 2012 to 2014, and helping manipulate the value of Cynk, according to a complaint unsealed Tuesday.