SEC Charges Former Public Company Chairman and Officers in Fraudulent SEC Filings and $8 Million Pump-And-Dump Scheme
Litigation Release No. 25610 / January 6, 2023
Securities and Exchange Commission v. Andrew DeFrancesco, Marlio Mauricio Diaz Cardona, Carlos Felipe Rezk, Nikola Faukovic, and Catherine DeFrancesco, No. 1:23-cv-00131 (S.D.N.Y., filed January 6, 2023)
The Securities and Exchange Commission today announced charges against five individuals for their roles in a fraudulent scheme to mislead investors about Cool Holdings, Inc., a publicly-traded company.
The SEC alleges that, from at least March 2018 through June 2019, Andrew DeFrancesco, the chairman of Cool Holdings' board, devised and implemented the scheme with Marlio Mauricio Diaz Cardona, Cool Holdings' chief executive officer; Carlos Felipe Rezk, Cool Holdings' chief marketing officer; and Nikola Faukovic, one of DeFrancesco's employees. According to the complaint, DeFrancesco, Diaz, and Rezk made false statements and omitted material information in Cool Holdings' filings with the Commission, including about a critical business relationship, in order to mask Cool Holdings' perilous financial condition and future prospects. The complaint further alleges that DeFrancesco, Diaz and Rezk arranged for the publication of a series of fraudulent promotional articles about Cool Holdings that DeFrancesco secretly funded. In addition, according to the complaint, with Faukovic's assistance, DeFrancesco secretly sold hundreds of thousands of Cool Holdings shares, which he held in the name of nominee entities, and ultimately sold over 1.6 million shares for proceeds of more than $8 million. Further, as alleged in the complaint, DeFrancesco, aided by Faukovic and his ex-wife Catherine DeFrancesco, also concealed his ownership of Cool Holdings shares, including by filing false beneficial ownership reports with the SEC.
The SEC's complaint charges Andrew DeFrancesco with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, the registration provisions of Sections 5(a) and (c) of the Securities Act, and the beneficial ownership disclosure provisions of Sections 13(d) and 16(a) of the Exchange Act and Rules 13d-1(a) and 16a-3 thereunder. The complaint also charges Diaz and Rezk with violating certain of the antifraud provisions, and, in the alternative, aiding and abetting certain of DeFrancesco's violations; charges Faukovic with aiding and abetting certain of DeFrancesco's violations; and Catherine DeFrancesco with violating beneficial ownership disclosure provisions of Section 13(d) of the Exchange Act and Rule 13d-1(a) thereunder. The complaint seeks injunctive relief and civil penalties against all defendants, disgorgement and prejudgment interest thereon from Andrew DeFrancesco, Diaz, Rezk, and Faukovic, and officer-and-director bars against Andrew DeFrancesco, Diaz, and Rezk.
The SEC's investigation was conducted by Katherine Bromberg and Danielle Srour of the Division of Enforcement's Retail Strategy Task Force (RSTF), and Melissa Coppola, and was supervised by Michael D. Paley, Hane L. Kim, Chief of the RSTF, and Thomas P. Smith, Jr. The litigation will be conducted by Ms. Bromberg, Ms. Srour, and Pascale Guerrier.
+ 25.000 IN A SINGLE TRADING DAY ??
+ 25.000 IN A SINGLE TRADING DAY ??
The company filed chapter 7 and will be liquidated entirely , why would you think buy out?
Shorts won't leave it alone till is totally destroyed, it'll need some positive News to burn them.. Watching...
I'll keep an eye on it!!
It may be good for speculation. Actually, it’s also speculation for most stocks.
We shall see. I'm optimistic.
ELMS(Q), also filed Chapter 7 on June 12, but it’s been traded actively.
Electric Last Mile Solutions, Inc. Announces Chapter 7 Bankruptcy Filing
2022-06-12 21:05 ET - News Release
TROY, Mich., June 12, 2022 /PRNewswire/ -- Electric Last Mile Solutions, Inc. (NASDAQ: ELMS) ("ELMS" or "the Company"), a pure-play commercial electric vehicle ("EV") company that has been focused on redefining productivity for the last mile, today announced the Company plans to file for Chapter 7 bankruptcy.
I would say that It’ll still take some time to wait for the court to make a decision, although in Chapter 7. During this period, the stock is tradable.
Don’t know how long it’ll wait, sometimes a few months, or years.
whatever you say! good luck!
Chapter 7, not Chapter 11. Good to go here!!
This could get deleted without warnning!
on June 14, 2022, the employment of Reinier Voigt, President, Chief Executive Officer and Director, and of Vernon A. LoForti, Senior Vice President, Chief Financial Officer and Corporate Secretary, were terminated. As a result, the Company no longer has any current officers.
Also, with the appointment of the Chapter 7 Trustee and concurrent with the Bankruptcy Filing, on June 14, 2022, directors Reinier Voigt, Kevin Taylor, and Michael Galloro resigned as members of the Company’s Board of Directors. The Company has no current members of the Board of Directors.
As a result of the Bankruptcy Filing, George Hofmann has been appointed as interim Chapter 7 trustee (the “Chapter 7 Trustee”), and the assets of the Company will be liquidated in accordance with the Bankruptcy Code
Ummm court proceedings would need to take place before that happens... Buyout coming imo.
This is a big risk people should know.
That means they lost a lot of money now.
what good news push the PPS up crazy? why pull back so fast? any idea?
SIMPQ $$$ SMART-BUYER LOAING BACK IN HERE TODAY, BIG VOLUME TODAY !!! 1 MILLION +, HOPE A MONSTER PR HITS, THEN THERE IS NO CATCHING THIS ONE..
mplscubfan...THAT'S WHAT IT LOOKS LIKE..THE SIMPQ $$$ FLOAT IS BEING BOUGHT UP...THE SELLERS/FLIPPERS ARE N*TS HERE..
SIMPQ volume kicking in. Buyout imminent imo...
SIMPQ $$$ IM LOAING BIG HERE, BEFORE THEY ANNOUNCE SOMETHING, CAUSE IF THEY DO, FORGET LAST RUN, ITS GOING TO GO TO $10.00+..
Just tell folks it's a pump and make it sound better
Penny..Why are You here....I'm sure your ladiing too....Nice try my friend, I get it your trying to help people.
Going to Bounce Hard!!!
Be out before the shoe drop
Don't know about the mobile app.........look for a place to upload images........
This could be a huge runner tomorrow.
$1 is possible with such a tiny float.
where is the news and who is the buyer
Oh I believe you........
And you can upload pics to IHub .......under Settings......
Then you can use the link that's generated.....
SIMPQ $$$ WATCH THE BUYING FRENZY ON MONDAY/TUESDAY...$2.00-$3.00 AGAIN AND FASTER, MAYBE HIGHER..
They have a buyer.
It is going skyrocket to $1 to $1.50 on Monday.
SIMPQ $$$ THE MONSTER CHART HAS RESETED, IT HAS FOUND BOTTOM, WATCH NEXT WEEK $2.00-$3.00 AGAIN IN 1-2 DAYS, AND PROBABLY FOR GOOD, SOMETHING BIG IS COOKING HERE, COULD BE A TAKEOVER/MERGER..