Canna Corp (fka CNCC)

[CashBowski]

Another continuation for Dror Svorai’s FBI case:

[CashBowski]

Is this the same company mentioned in the FBI case?

http://archive.fast-edgar.com//20200317/ASLD922CZ225M2Z2222Q22ZZONHNZZS22222/

[CashBowski]

Wonder if svorai is handing the keys to this heap of junk to his brother, like GOILD found he did with the VPOR Grinder. If he’s transferring assets, then he must not have a good feeling with his case. But, my question is why aren’t all his assets frozen?

[CashBowski]

Dror Svorai asked to have his ankle monitor removed because in essence he’s an exemplary fraudster and not at all a flight risk regardless of his dual citizenship (LMAOOOO), and prosecutors basically said you face up to multiple decades in prison, so be happy you’re walking around sunny south Florida and aren’t sitting in a jail cell awaiting trial.

Long story short judge said nope.

This POS criminal has some cajones. SMH

[Locksmith]

Not surprising, but I like the date irony.

[CashBowski]

Dror Svorai’s FBI case was granted another extension until 4/20/20.

[Locksmith]

Ah, yes. Add another name to the potential “movie credits”.

Going to need a program just to keep track of the players. LOL!

[G-OiL-D]

Georgie boy has been deeply involved also. At
74, I doubt that he would want to do any stout house time just to save Dror's sorry keister.

https://www.bizapedia.com/people/jorge-schcolnik.html

[CashBowski]

Yeah, Nahon sounds like the perfect rat. He did Dror’s dirty work imo by keeping angry SH’s at bay by contacting them through twitter DM, while knowing all along they (SH) were being diluted and the products were nothing but a dog and pony show to sell shares. He used the same method to threaten SH’s about posting the truth on this platform.

It would be a travesty if they let Nahon, Ruggeri, or esp the brothers off the hook. Ffs the $1M used for Dror’s bail by Dekel Svorai was likely obtained via dilution of the same shares in question LMAO.

[Locksmith]

Yes, I find it strange that all of those you mention are still on the loose. I can't help but wonder who the insider is. I doubt the brothers would turn on each other, so that leaves Y and Ruggeri. Now, Ruggeri is well known on both sides of the table so him being a credible witness doesn't seem that plausible to me. Y, on the other hand may have something to bargin with. I don't know anything for a fact on this topic; perhaps it is somebody else, entirely outside of the known cast of characters?

The 1/20 date is coming up, but it's only a date on the calendar. There have been zero updates on any of the 4 trials in question, which leads me to wonder about the prospect of plea deal being in the works. Without any mention of a trial in the court records, I assume no trial date has been set. 1/20 may come and go. I'm not holding my breath, but I will go get another refill of popcorn. I'll be interesting to see how this all plays out.

[CashBowski]

Not much longer for Dror...

I wonder how Yaniv escaped charges since he knew about the entire scheme and was along side Dror the whole time — he even went as far as threatening folks that would post truth to power here about what was really going on. Smh

I really hope the FBI is looking into him and Dror’s brothers. Dror couldn’t have pulled this entire scheme off without Ruggeri, Yaniv Nahon, and the brothers Doron and Dekel.

[CashBowski]

Has anyone contacted SEC about the status of this company since Dror has become target of the FBI investigation for securities fraud.

[Locksmith]

Vaccaro and Dror have both requested and received court extensions until 1-20-20.

[CashBowski]

Thanks for the update bud. Can’t keep up with all the securities fraud and racketeering charges allegedly perpetrated by Dror Svorai & Co.

[Locksmith]

If they do, they have my permission to use whatever they can get ahold of.

[G-OiL-D]

Looks like Dror is gonna run out of
ankles, for all of the bracelets coming his way!

[Locksmith]

To clear things up a bit, it is the FBI fraud case in OH that has been delayed until 10/21/19.

Dror's other case with the Rico violations wrt Northway, is waiting for the plaintiff and judge to schedule and have a conference call. Seems like the NY court is kind of busy these days.

[Locksmith]

Dror requested and received a continuance until 10/21/19.

[CashBowski]

Indeed. Dror Svorai is screwed as far as the Feds are concerned.

Couldn’t think of a more deserving person.

[Benwahsauce]

Yikes

RICO violations are serious shit.

Somebody going away for a long time!

Plus to hit them with that, there is probably somebody behind the curtains

[G-OiL-D]

On a positive note, Svorai will still be
able to do bench presses even with the designer ankle bracelet.

[CashBowski]

I was waiting for that LOL.

There’s more federal criminal charges and dirty debt in this ticker than any business or assets.

I have no clue how this ticker is not halted yet. Only thing I can think of is the SEC is still putting their case together, apart from the FBI.

[Locksmith]

I’ll bet they even took the water bottles. SMH

Well, at least soon I’ll be able to say I once shook hands with a federal inmate or two.

[CashBowski]

Northway Mining Sued For Violation of RICO Act

Dror Svorai and CNCC legal problems look even more grim!
Add a dash of racketeering before getting caught in a FBI sting for securities and wire fraud and you have a perfect storm for Mr. Svorai & Co.

http://4btcnews.com/new-york-bitcoin-mining-magnate-accused-of-stealing-over-5000-crypto-miners/

By CCN.com: A New York Bitcoin miner hosting company called Northway Mining stands accused of stealing at least 5100 pieces of mining equipment from two companies. Given the scope of the investigation currently underway by the federal government, the damage might be much more significant than this.

Northway Mining Sued For Violation of RICO Act
At least four Bitcoin companies have been allegedly victimized, though we use the term “allegedly” in its most legal definition: strictly because the accused have not yet been convicted.

MinedMap, Inc, Serenity Alpha, Inc, both of Nevada, and Quebec, Inc from Canada. The other is BlockAssets, a company based in Perth, Australia.

The former chose Northway Mining to host more 2800 Bitmain S9 miners, over half of its entire fleet, in September 2018. Another 800 miners were sent to the facility by the companies. The latter had the decision made for them by a Canadian company who couldn’t handle their 1500 units. We’ll be following up with a story about BlockAssets at another time.

As to MinedMap, Serenity Alpha, and Quebec Inc, they’re collectively filing lawsuits against Northway Mining, as a start. At the same time, the issue is currently being treated as a criminal investigation by federal authorities. As you can see in the videos below, the US Marshall Service searched the facility leased by Northway in Coxsackie, New York, this past week.

At Least Over 5000 Bitmain Miners Stolen in All
The pending lawsuit alleges that Northway bilked clients out of nearly 3600 pieces of Bitcoin mining equipment (one was recovered with the help of the Marshalls), as well as over $ 500,000 in deposits. The complaint records this:

Québec Inc. also requested the return of its deposits of $ 46,746.09, $ 23,255.66, and $ 23,824.42 for a total of $ 93,826.17 because its deposits had not been spent on electrical power since the Miners were not plugged in. […] On September 21, 2018, MinedMap and Serenity wired $ 162,000.00 to Northway as a deposit on the electrical costs Northway was to incur hosting MinedMap and Serenity’s Miners. In addition, almost one week later, MinedMap and Serenity wired an additional $ 270,000.00 as an additional deposit for electrical costs Northway would incur in providing electricity to MinedMap and Serenity’s Miners.

EXCLUSIVE!@danielikim who is suing Northway Mining LLC in NY has just entered their facility with US Marshals to find 2,300 of his s9j @BITMAINtech boxes EMPTY.
Glad to see a victim actually going after someone like this to be made an example out of! #Bitcoin $ btc #crypto pic.twitter.com/eHSugMDFhW

— TheCoinDad (@TheCoinDad) May 2, 2019

. @coindesk @CCNMarkets @BTCTN @APompliano @CryptoBoomNews @JWilliamsFstmed @jpbaric @Cointelegraph pic.twitter.com/Ug1HqdZNHG

— TheCoinDad (@TheCoinDad) May 2, 2019

CCN spoke to Daniel Injoon Kim, who is a managing partner with MinedMap and Serenity Alpha. Between the companies, they have over 5,000 Bitmain S9s operational. They would have over 50% more if it had not been for what happened with Northway Mining, a facility they hired to manage a new batch of miners.

They had the miners shipped directly from Bitmain last September, and as the video above shows, many of the boxes were found, but no miners. Kim and some partners have been mining since 2016 in Canada, but when Quebec placed a moratorium on new mining operations, they were forced to colocate with a partner. They found Northway on the recommendation of a broker they knew. Kim and his partners believe that this broker acted on good faith.

“Where Is My Money? Where Are My Miners?”
After the Bitcoin miners arrived at the facility in Coxsackie, it’s a mystery what happened to them. The likely scenario is that they’ve been resold. The miners could be somewhere operating on behalf of Northway at this point, but that can’t be verified.

Court documents claim that the facility was unable to host even 200 miners as of June 2018, which underlines the fraud allegations – plaintiffs believe that the fraud was organized and intentional from the beginning.

The miners having been brand-new, the question of why Bitmain can’t do more to locate them arises. Kim isn’t sure, and the ongoing lawsuit against Bitmain regarding the way new miners connect to Bitmain servers is news to him. He does note that Bitmain have been as helpful as he expected.

Kim told CCN:

We made a deal to have our miners hosted in their facility located 30 minutes south of Albany, NY. They lied to us continuously until the very end. We wanted to pull out the miners finally in February, he then says talk to our lawyer and as of today, May 2nd, 2019 they left our boxes, 1 miner, and have resold or hosted with other entities at 3rd party facilities.

Facility Owner Sues Northway, Too
According to court filings, Northway Mining owes the owner of the facility a significant sum of money. Kim says that Ultegra was part and parcel to the scam:

The lender, Ultegra Financial has colluded and is a part of the fraud ring.

However, Ultegra is still trying to recover lost money from Northway.

MinedMap, Serenity Alpha, and Quebec Inc have a joint lawsuit against Northway, which names several partners in crime: Michael Miranda, Michael Carter, Dror Svorai, Motorcycle Salvage, LLC, Mining Power Group, and Hudson Data Center.

The suit uses the RICO Statute – yes, the one that brought down half of the mafia throughout the 1980s and 90s. In total, eight separate charges are listed in the complaint. Kim says his law firm is doing a “fantastic job right now” and the allegations of criminal conduct are what led federal officials to get involved.

Around $ 1 Million In Lost Revenue
The lawsuit says that the plaintiffs have collectively lost around $ 1 million in Bitcoin mining revenue. It additionally states that the miners themselves are worth about $ 900,000 based on current market conditions.

Had Serenity and MinedMap timely received their Miners, they would have earned at least $ 1 million dollars to date.

Plus legal fees and the cost of wining and dining Northway partners, the alleged scammers have gotten off with a pretty sizable haul.

The Scammer Takes Off The Mask of Cordiality
The relationship between Daniel Kim (and his partners) and Northway devolved over a five-month period, in which the miners were never installed or used. Michael Maranda continually made excuses for delays, and eventually, when it came time to refund the money, said the money had been used in some other “buildout.” The lawsuit alleges that Maranda used company funds for several personal expenditures, including vehicles and real estate.

[CashBowski]

Teri Buhl offers more details about what entities were involved with the promotional activity regarding the Florida Svorai FBI sting.

https://cannabislaw.report/fbi-sting-catches-cannabis-stock-manipulators-potnetwork-holdings-exposed/

FBI Sting Catches Cannabis Stock Manipulators: PotNetwork Holdings Exposed
By Teri Buhl

Three South Florida men have been arrested as part of a ring of cannabis stock manipulators by the Northern Ohio Department of Justice.

Charles Vaccaro, Eli Taieb, and Dror Svorai were all charged with securities fraud, wire fraud, and conspiracy after two FBI agents went undercover posing as bad actors willing to funnel the trio’s illegal stock gains back into their U.S. bank accounts.

The cannabis stocks involved in the scheme include: PotNetwork Holdings ($POTN), Vaper Group ($VPOR), and White Label Liquid ($WLAB).


Pot Network Holdings Facebook Page
All three men were released on million dollar secured bonds and Taieb and Svorai had to turn over their passports. Svorai was assigned a GPS tracking ankle bracelet.

The scheme involved the men using private investment companies they owned to make PIPE investments in the stocks eventually owning up to around 20% of the company. PIPE’s are a public investment in a private entity achieved through making a debt investment that converts to common stock when the company can’t pay the high interest loan. It’s often known as death spiral investing because the conversion rates enable the investors to get millions of shares with relatively small investments. By operating in this fashion the three men investing as an undisclosed group means that public shareholders cannot see how much ownership control of the stock they really have.

Charles Vaccaro first made contact with the undercover FBI agent in July 2019 when he said he was looking for someone to help them liquidate around $100 million in stock in multiple companies and it had to be processed in a foreign brokerage account because the Securities and Exchange Commission was getting tougher on U.S. broker dealers liquidating large blocks of penny stock.


Charles Vaccaro
All three companies traded on what is known as the OTC Markets. The FBI affidavit filed in federal court says Eli Taieb told the undercover agent they would spend $100,000 to $200,000 on paid promoters to pump the stock once their shares converted.

The idea was that the FBI agent(s) would sell their shares at the height of the pump with the goal of liquidated $1 million shares a week and take a 20% clearing fee. Then the FBI agent was supposed to launder the remaining profits into nominated U.S. bank accounts. One of the bank accounts set up to receive the illicit funds was a Well Fargo account for D&D Capital, a company owned by Dror and his brother Dekel.


Dror Svorai
Dror Svorai told the agent they could make $2 to $3 million within a month. The outlined plan was to start with Vapor Group then move on to PotNetwork Holdings. Vaccaro controlled PotNetworks and Svorai controlled Vapor Group. Svorai said between the three men they controlled in the region of 6 to 7 billion shares of Vapor Group.

The agent, on expressing concern about trading volume because some stocks had warning symbols, was brushed off by Taieb with the excuse on why it wouldn’t matter saying.

“we can make a lot of money doing this,

not just make a living.”

Svorai also explained, if they had to, they could also “bring in awareness”. The FBI agent said in the affidavit he thought that this meant a paid promotion campaign. But Cannabis Law Report has learned Svorai was actually talking about hiring the Awareness Consulting Network owned by Edris Mendez. ACN is known as a third party payer.

The FBI eventually arrested the trio on July 19th 2019 and asked the judge to seal the case because the investigation is ongoing. They also seized the D&D Capital bank account. The case was unsealed a week later and first reported by Michael Goode who tracks small cap stock fraud on his blog Goodetrades.com.

A total of five stocks were in the scheme detailed to the FBI which also included two bitcoin companies Clic Technology and Canna Corporation which owns Northway Mining.

Cannabis Law Report has tracked a number of companies that promoted the stocks and disclosed they were paid by ACN. It appears the arrested trio’s relationship with ACN goes back to at least January 2017.

The promoters include:

AwesomeStocks.com owned by Adam L. Garcia. Garcia bought his investor list from a known bad actor named Drew Ciccarelli from Charleston, South Carolina.
SmallCapFirm.com owned by Enrique Pena
StockwireNews.com owned by Kai Parker
ProtraderElite.com owned by Rafael Pereira
Thewolfofpennystocks.com owned by Richard Eillis
The securities and exchange commission allows promoters to write positive research on stocks as long as they disclose who is paying them. Because the trio hired a third party payer to pay off the promoters they can try and hide who is really paying for the campaign.

According to research undertaken by Cannabis Law Report Vapor Group had at least five paid promotions in the last two years. Copies of the email campaigns were obtained by Cannabis Law Report showing the following promotions happened:

Jan 9, 2017 by Rafael Pereira
Apr 30 thru May 1, 2019 by Enrique Pena
May 8 and 9, 2019 by Richard Ellis
May 12 and 13, 2019 by Enrique Pena
May 16, 2019 by Adam L. Garcia
PotNetwork Holding has at least two paid promotions this year (2019)
May 1, 2019 by Adam Garcia
June 4 and 5, 2019 by Richard Eillis
PotNetwork Holdings had a higher stock price than Vapor Group with a spike in January 2018 to $.85 from a low a few weeks prior of $.06. The company got the attention of top cannabis analyst Alan Brochstein who began questioning the outstanding share count compared to what the company was reporting. Brochstein is also the owner of media outlet, New Cannabis Ventures. PotNetwork has changed their business plan multiple times but eventually began selling CBD products.

In June 2018 Brochstein wrote, “While it is positive that the company has finally filed with the SEC after several years of trading as a cannabis penny stock without having met this criterion previously, the information provided in the filing is inadequate and in many ways reflects poorly on the company. Even if one is willing to look beyond some yellow and red flags, the valuation appears to be very difficult to justify.”

Meanwhile Charles Vaccaro who was PotNetwork Holdings past president in 2014 was being sued in Connecticut federal court by tough guy hedge fund manager, Steven Hicks of Southridge Capital. Vaccaro was accused of controlling the company behind the scenes still and ordering the company not to allow Southridge to convert debt to stock on a stock purchase agreement.

It transpires PotNetwork Holdings took money from Southridge as a loan and didn’t pay Southridge back. The case is ongoing. A review of federal court cases across the United States shows the actions in the Southridge suit was a pattern of self-dealing lead by Vaccaro and Svorai in many stocks they controlled.

Vaccaro has a history of bad behavior. He ran a broker dealer called FI trading that was expelled from FINRA in 2003. In 2015 while working at another trading group he didn’t pay a customer dispute award and FINRA took away his broker dealer license. A review of multiple trading chat rooms show warnings about Vaccaro at more than one prop trading group for allegedly taking client money.

Some of Vaccaro’s alleged ill-gotten gains were spent on a 70-foot Italian-made Azimut yacht that he named C-Weed.


Azimut Yacht
Florida llc records show they boat was set up in his name in 2017. Last year he was charged with four misdemeanors when the boat, docked in trendy Montauk, New York, was leaking waste into Lake Montauk. Apparently no one bothered to pump out the yachts four toilets. At the time of the arrest the East End Hampton cops also found out the State of Florida had outstanding charges against him for unpaid taxes. Vaccaro currently is selling a near million two bedroom high rise apartment with ocean views in Sunny Isles Beach Florida. He also owns a home in Port Washington, New York.


Alex Spiro, Partner, Quinn Emanuel
Vaccaro hired an expensive Quinn Emanuel white color defense lawyer named Alex Spiro. Attorney Spiro was also recently hired by cannabis investor Andy Defrancesco for the Aphria class action shareholder fraud suit he is fighting. It’s unclear if the two men have invested together in the past.


Steven Dettelbach, Partner, Backer & Hostetler
Taieb is being defended by Steven Dettelbach of Backer & Hostetler who was the former U.S. Attorney for Northern Ohio. Svorai is being represented by Florida –based sole practitioner David Sobel.






I’m a professional financial investigative journalist who has written for the Greenwich Time, Hearst CT Newspapers, Forbes Magazine, Fortune.com, The Atlantic.com, New York Magazine, New York Post, Trader Monthly, Housingwire, ML-Implode, The Business Insider, Long Island Business News, Dealbreaker, New York Observer, Bitcoin Magazine, DealFlow Media, SIRF.org and more. For the last five years I have been a contributing reporter for Market Nexus Media who publishes a financial trade publication called Growth Capital Investor.

I earned my breaking/investigative news chops reporting during the financial crisis in 2008 for the Sunday edition of the New York Post. I was one of the first to report on the missteps at IndyMac that lead to government investigations and lawsuits against the banks founders. Caught hedge funds like Carrington Capital abusing investors without disclosing conflicts of interest with senior RMBS bond holders; they were sued by Wilbur Ross for Civil RICO. I exposed Bear Stearns misleading their own investors and monoline insurers on the quality of the loans in their mortgage-backed securities, which led to a fraud lawsuit against JP Morgan/Bear Stearns and the $13 billion settlement with the DOJ in 2013. Since 2010 multiple Wall Street firms, that my reporting warned about first, have been [JP Morgan, SpongeTech, Security Savings Bank, SAC Capital, Palm Beach Capital Management, New Stream Capital, NIR Group/Cory Ribotsky, Bear Stearns RMBS Traders, Mike Perry IndyMac CEO, Steven Muehler and the Nanocap MarketPlace, Barry Honig and The Frost Group] investigated or charged for financial violations by the FBI/SEC/State AG or shut down by bank regulators.

The Huffington Post named me the number three most dangerous financial journalist for being willing to challenge the establishment and inform readers best. I’m working on trade-marking “Smashmouth Journalism”

Read More About Teri’s Work At: https://www.teribuhl.com/about/

[Locksmith]

https://www.greenmarketreport.com/category/legal/

[CashBowski]

Skull and Crossbones issued on all 5 tickers. It was only matter of time.

[CashBowski]

Filing in Ohio in the FBI case against Dror Svorai after appearing in court today:

[Locksmith]

You’d have to pay me to take it.

[G-OiL-D]

Domain for sale, Cheap!
http://dror-svorai.com/?reqp=1&reqr=

[CashBowski]

Its literally been exposed by the Feds as a scam company that they planned to milk for $millions. Any trading activity going on here is diluters, and according to the charging docs “float is owned by his friends and family” that are now stuck and planning and jockeying for an exit before regulators halt this junk.

Feds are going to have a good time with Dror, but I really hope they nail his 2 brothers, Dekel and Doron.

[Locksmith]

I don’t understand how this can still trade. There is nothing to this “company” and now there’s even less.

Oh the stories this will make in a year or two from now.

Thanks for all you do CB.

[G-OiL-D]

As always, thanks for your info and input! Much appreciated.

[CashBowski]

I’m sure they’ll clawback and cancel whatever shares and proceeds they can find — mostly in VPOR. As you know that’s where they did most of the looting and they hadn’t started heavy here yet.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=150222697

I’m frankly surprised CNCC is still trading. This all happened so quickly that it might still be getting caught up with the SEC. This might end up with a chill once the FBI fully briefs regulators, or there’s other investigations running parallel that are currently under seal that may delay any actions — tough to say at this point.

[G-OiL-D]

CB, what do you think the chances are
of the feds confiscating or cancelling Dror's billions of scammed shares?

[pw18]

excellent point...the s/p fell apart way before anyone not close to dror would have known of his arrest..

[CashBowski]

All my posts trying to point out their scheme’s was well researched. I knew it was only a matter of time, and started to get suspicious again when I saw the trading here (fake trades) in the last couple of weeks and I even mentioned it.

Take a look at the daily chart — within 48 hours of Dror’s arrest the price tanked. I didn’t know, did you? That only leaves a certain group that were manipulating the price for their scheme.

Btw, there’s more people that aren’t mentioned, per the 1st FBI agent. Let’s see where Yaniv Nahon ends up in all of this since his hands are just as dirty for sticking around with this criminal enterprise.

[pw18]

what a bunch of f*cktards...they had an 80m co to put in cncc..? geez..

[CashBowski]

Court Docs of Feds take down of Dror Svorai.

This was a multi million dollar share selling scheme Involving 2 other individuals and 5 companies including Canna-Corpse...
CNCC
POTN
VPOR
WLAB
CLCI

United States v. Dror Svorai

[CashBowski]

Dror’s out on $1M bond and a fancy ankle bracelet, and his bank account bearing the name of his brother’s company D&D Capital that he was allegedly using to funnel cash was seized by the FBI.

Allegedly there were plans of laundering multiple millions from stock schemes here and several other public companies, except they didn’t realize the foreign company they allegedly planned on funneling stock sales through was run by federal agents LMAO.

That scumbag is being charged with conspiracy + securities fraud + wire fraud.

Lock him up!

https://www.courtlistener.com/docket/15948266/united-states-v-svorai/?

[RickieK]

Busted for manipulation

https://www.courtlistener.com/docket/15948268/1/1/united-states-v-vaccaro/

[Jbb4321]

this is going to trips

dror arrested

https://www.courtlistener.com/docket/15948268/united-states-v-vaccaro/

[G-OiL-D]

No products, no future, DOA, Casket-Corpse.

[willlbone]

Might drop 90% today. Certainly market cap is 10x too high.

[CashBowski]

I was 99.9999% sure Canna-Corpse was a new Svorai/Nahon scam (fake trades and all), but I was still curious about the .0001% possibility it wasn’t LMAO.

[Locksmith]

True, funny and sad; all at the same time!

[pw18]

well..they can always retire stock..which goes against everything they stand for..lol

[Jbb4321]

does it really matter at this point, lol

according to otc june filings dror still ceo


https://www.otcmarkets.com/stock/CNCC/disclosure

[G-OiL-D]

I wonder if Dror knows Yaniv slipped in there as Cannacorpse CEO! These dorks just don't quit!


https://www.bloomberg.com/profile/person/19136175

[CashBowski]

Too many shares here to merge vapor imo, unless they want to destroy vapor shareholders. Their WL_AB ticker is a better match to merge vapor into without screwing over either CO’s shareholders that much. Maybe 500:1.

These are all super-scam companies so anything is possible LOL.