CyberKey Solutions, Inc. (CKYS) was a Pink Sheet / penny stock scam that had hundreds or thousands of investor victims who believed its false press releases and false financial statements regarding a $25 million contract with the U.S. Department of Homeland Security.
The former CEO, James E. Plant, was arrested by the FBI on 3/13/2007 and pleaded guilty to criminal fraud on 6/30/2008.. He is serving over 8 years in a Federal prison for securities fraud. http://www.sec.gov/litigation/litreleases/2009/lr20979.htm
The attorney who helped facilitate the fraud, J. Bennet Grocock, was sanctioned by the SEC.
Big Apple Consulting, its principals and an affiliated entity were sued by the SEC for fraud and multiple violations of securities laws for their actions in relation to CyberKey Solutions. They were found guilty of all charges on 1/18/2011. Fines, disgorgement and sanctions are still pending.
Arrested and released 3/13/07 - Please read below for the status of all current cases!
Arrest Documents: #msg-18383342
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U.S. Department of Justice
United States Attorney
Eastern District ofPennsvlvania
Marcia Thomas-Bayne 615 Chestnut Street
Direct Dial: (215) 861-8509 Suite 1250
Facsimile: (215) 861- 8616 Philadelphia, Pennsylvania 19106-4476
(215) 861-8200
June26, 2008
RE: United States v. James Plant
Case Number 2007R00150 and Court Docket Number 07-375-01
The United States Department of Justice believes it is important to keep victims of federal crime informed of court proceedings. This notice provides information about the above-referenced criminal case.
Charges have been filed against defendant James Plant. The lead prosecutor for this case is LEO R. TSAO. The main charge is categorized as Securities Fraud.
The Crime Victims' Rights Act gives victims of criminal offenses in Federal court certain rights, including: (1) The right to be reasonably protected from the accused; (2) The right to reasonable, accurate, and timely notice of any public court proceeding involving the crime, or of any release or escape of the accused; (3) The right not to be excluded from any such public court proceeding, unless the court, after receiving clear and convincing evidence, determines that testimony by the victim would be materially altered if the victim heard other testimony at that proceeding: (4) The right to be reasonably heard at any public proceeding in the district court involving release, plea, or sentencing; (5) The reasonable right to confer with the attorney for the Government in the case; (6) The right to full and timely restitution as provided by law; (7) The right to proceedings free from unreasonable delay; and (8) The right to be treated with fairness and with respect for the victims' dignity and privacy.
We will make our best efforts to ensure you are provided the rights described above. It is important to keep in mind that the defendant is presumed innocent until proven guilty and that presumption requires both the Court and our office to take certain steps to ensure that justice is served. While our office cannot act as your attorney or provide you with legal advice, you can seek the advice of an attoi-nèy VQith repect to these rights or other related legal matters.
The defendant, James Plant, has been released from federal custody.
A hearing is scheduled before Judge NORMA L. SHAPIRO on June 30, 2008, 10:00 AM at Courtroom 1OA for the case which involves defendant James Plant. The purpose of this hearing is for the defendant to enter a plea of guilty.
We are currently in the process of assigning you a Victim Identification Number (VIN) and Personal Identification Number (PIN). We expect to provide you with your VIN and PIN shortly. Once you receive your VIN and PIN, you will be able to access information via the Victim Notification System (VNS), and update your personal information into VNS. We will provide you with additional details when we send you your VIN and PIN.
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**Pacer Documents - 5/18/07
http://public.box.net/tomvlasic48986
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USA v. Plant ~ 3/12/07 (Criminal)
Case Number: 2:07-mj-00304
Defendant: JAMES PLANT
Plaintiff: USA
Case Information:
Court: Pennsylvania Eastern District Court
Office: Philadelphia Filed: 03/12/2007
County: Philadelphia
Other Court Case: None
Complaint Citation: Offense Level: 4
KNOWINGLY AND WILLFULLY, AND WITH INTENT TO DEFRAUD, DIRECTLY AND INDIRECTLY, IN CONNECTION WITH THE PURCHASE AND SALE OF CYBERKEY SOLUTIONS INC. STOCK, DID THE FOLLOWING: (1) EMPLOYED A SCHEME TO DEFRAUD; (2) MADE UNTRUE STATEMENTS OF MATERIAL FACT AND OMITTED TO STATE MATERIAL FACTS NECESSARY TO MAKE THE STATEMENTS MADE, IN LIGHT OF THE CIRCUMSTANCES UNDER WHICH THEY WERE MADE, NOT MISLEADING; AND (3) ENGAGED IN ACTS, PRACTICES AND COURSES OF BUSINESS THAT OPERATED AS A FRAUD AND DECEIT, ALL IN VIOLATION OF TITLE 15:78j(b), 78ff
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**USA v. Plant ~ 3/12/07 (Civil)
Case Number: 2:07-cv-01084-CMR
Plaintiff
SECURITIES AND EXCHANGE COMMISSION represented by JEFFERY T. INFELISE
U.S. SECURITIES EXCHANGE COMMISSION
100 F STREET NE
WASHINGTON, DC 20549
202-551-4904
Fax: 202-772-9362
Email: infelisej@sec.gov
LEAD ATTORNEY
ATTORNEY TO BE NOTICED
Defendant
CYBERKEY SOLUTIONS, INC.
Defendant
JAMES E. PLANT
Case Information:
United States District Court
Eastern District of Pennsylvania (Philadelphia)
CIVIL DOCKET FOR CASE #: 2:07-cv-01084-CMR
SECURITIES AND EXCHANGE COMMISSION v. CYBERKEY SOLUTIONS, INC. et al
Assigned to: HONORABLE CYNTHIA M. RUFE
Cause: 15:77 Securities Fraud
Date Filed: 03/20/2007
Jury Demand: None
Nature of Suit: 850 Securities/Commodities
Jurisdiction: U.S. Government Plaintiff
Date Filed # Docket Text
03/20/2007 1
COMPLAINT against all defendants, filed by SECURITIES AND EXCHANGE COMMISSION.(tj, ) Additional attachment(s) added on 3/20/2007 (tj, ). (Entered: 03/20/2007)
03/20/2007 Summons Issued; 2 Mailed to counsel 3/20/07 as to CYBERKEY SOLUTIONS, INC., JAMES E. PLANT. (tj, ) (Entered: 03/20/2007)
Related Docs:
http://www.sec.gov/litigation/litreleases/2007/lr20049.htm
http://www.sec.gov/litigation/complaints/2007/comp20049.pdf
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Media Coverage:
**SEC Suspension ~ 2/05/07 .................... http://www.sec.gov/litigation/suspensions/2007/34-55237.pdf
Initial arrest news:
http://www.mn1.com/members/modules.php?name=News&file=article&sid=13412
Utah KUTV News 3/21/07:
http://kutv.com/local/local_story_080230525.html
SEC Regulation Proposal ............... #msg-18136664
