The Securities and Exchange Commission Charges 34 Defendants in Microcap Market Manipulation Schemes
Jul 14 15
The Securities and Exchange Commission charged 15 individuals and 19 entities for their roles in alleged schemes to manipulate the trading of microcap stocks. The 34 defendants include six firms alleged to have acted as unregistered broker-dealers catering to customers who sought to conceal their stock ownership and manipulate the market for microcap securities. Owners and employees at the six firms, several customers, stock promoters, and two microcap issuers - Warrior Girl Corp. and Nature's Peak, formerly Everock, Inc. also are among the defendants in the case filed in federal district court in Manhattan. The SEC charged the defendants with fraud, manipulative trading, touting, and with registration violations. Nine of the defendants were named in a criminal indictment charging them based on their roles in the alleged stock manipulation scheme. The SEC complaint alleges that Moneyline Brokers and its founder Harold Bailey ‘B.J.’ Gallison II unlawfully operated as a broker-dealer for U.S.-based customers who engaged in ‘pump and dump’ schemes to artificially inflate a stock's price and then sell their own shares. In addition to Moneyline, the complaint alleges that two Costa Rica-based firms, Sandias Azucaradas CR, S.A. and Vanilla Sky, S.A., and three Nevada-based firms, Bastille Advisors, Inc., Club Consultants, Inc., and Jurojin, Inc., operated as unregistered broker-dealers. Promoters who were charged Dresner, Antonio J. Katz, of Red Bank, N.J., Moeller, Richard S. Roon, of Rumson, N.J., AKAT Global LLC, Digital Edge Marketing LLC, Oceanic Consulting LLC, and Spectrum Research Group Inc. The other defendants charged are Allan M. Migdall, of Fort Lauderdale, Florida, Robert S. Oppenheimer, of Belvedere Tiburon, Calif., Core Business One, Inc., Bermuda-based Fry Canyon Corp., L.F. Technology Group LLC, Starburst Innovations LLC, and Tachion Projects, Inc., along with B.H.I. Group, Inc. and U D F Consulting Inc., both of New York.