Suspects face arraignment in global penny-stock fraud

[webfact]

Suspects face arraignment in global penny-stock fraud

NEW YORK CITY, August 15, 2013 (AFP) - Six people were to appear in US federal courts on Wednesday in connection with what US officials are calling one of the biggest international penny stock frauds ever investigated.

They were among nine Canadians and Americans - two of them expats in Thailand - indicted on charges of bilking investors in about 35 countries of more than $140 million, the US Attorney's Office for the Eastern District of New York said.

A seventh suspect was arrested in the Canadian province of Ontario, while two others remain at large.

"The indictment and arrests are the result of one of the largest international penny stock investigations ever conducted by the Department of Justice and the Federal Bureau of Investigation (FBI)," with help from foreign police, the US Attorney's Office said.

According to the indictment against them, the defendants fraudulently "pumped up" the share price of worthless penny stocks and then "dumped" billions of shares of those stocks by unloading them on unsuspecting investors worldwide.

They also allegedly operated "boiler room" call centers in at least four countries that induced penny-stock investors to pay advance fees that the defendants promised would enable them to sell their stocks and recover losses. In fact, the fees were stolen.

"I tell you what man ... hitting the Americans would be like taking money from a baby," one of the defendants was heard saying in an FBI wiretap.

Those arrested were named as Kolt Curry, 38 and Gregory Ellis, 46, both Canadians from Ontario; and Americans Gary Kershner, 72, of Arizona, Joseph Manfredonia, 45, of New Jersey, Cort Poyner, 44, of Florida, and Sonkram Roy Sahachaisere, 43, and William Seals, 51, both of California.

Still at large are Sandy Winick, 55, and Greg Curry, 63, both Canadians whose place of residence was given as Bangkok.

If convicted, the nine face up to 20 years in prison for each count of conspiracy, wire fraud and securities fraud, as well as time behind bars for impersonating an agent of the Internal Revenue Service (IRS), the US tax collection agency.

Those arrested in the United States were slated to appear in federal courts in New York's Brooklyn borough as well as Miami, Los Angeles and Tucson, Arizona.

-- (c) Copyright AFP 2013-08-15

[geriatrickid]

This should be in the Thai news section.

The alleged mastermind is Sandy Winick.

“Sandy Winick is currently in Thailand, and in his own words, attempting to hide from U.S. authorities,” Loretta Lynch, U.S. attorney for New York.

http://www.cbc.ca/news/world/story/2013/08/14/business-stock-fraud.html

According to the indictment filed in court, the defendants worked from throwaway cellphones and from call centres in Thailand, China, Vietnam and Canada.

A second Canadian man — 63-year-old Gregory Curry, father of Kolt Curry — is also at large.

A joint investigation by the Department of Justice, the FBI and the RCMP used wiretaps and video surveillance to uncover the so-called pump and dump scheme. The penny stocks involved included companies such as Resource Group International, a Wyoming corporation based in Thailand that says it developed a revolutionary fertilizer, and RainEarth Inc., a Nevada corporation based in Beijing that says it is in the mineral-exploration business and developing a specialized fibre, according to prosecutors.

Grgory and Kolt Curry are indicted for their role as managers of the call centers. Gregory Curry is possibly in Thailand as well.

.More details at the Toronto Star. http://www.thestar.com/business/2013/08/13/canadians_charged_in_140_million_penny_stock_fraud.html

[Joe Mamma]

Anyone who does business with cold calls is nuts. It is like the self made millionaires who want to share their secret to riches, for just a little dough. They shouldn't need or want to sell themselves.Trust only the man named "nobody".

[BlackJack]

where's their pictures so if we spot them we can get the reward

[Fidelius]

A Thai immigration officer is search the Bureau's database this very moment so that he can earn the reward.