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SEC v. Irwin Boock, Stanton B. J. DeFreitas, Nicolette D. Loisel, Roger L. Shoss, and Jason C. Wong, Birte Boock, and 1621566 Ontario, Inc., Civil Action No. 09 CV 8261 (S.D.N.Y) (DLC)
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21243 / October 8, 2009
SEC Charges Five With Dozens of Fraudulent Corporate Hijackings and Unregistered Offerings of Securities and Names Two Relief Defendants
SEC Litigation Release
SEC Complaint - PDF
Judge orders Toronto billionaire’s ex-partners to pay millions
The Globe and Mail
JEFF GRAY - LAW REPORTER
Last updated Friday, Mar. 07 2014, 7:45 PM EST
A group of Alex Shnaider’s former business associates must hand over tens of millions of dollars for engaging in “fraudulent misrepresentation” and an “unlawful conspiracy” to lure the Toronto billionaire into investing about $50-million in a Russian oil joint venture, an Ontario Superior Court judge has ruled.
In an 166-page ruling issued late Friday afternoon, Justice Mary Anne Sanderson also completely rejects a list of sensational allegations made by Mr. Shnaider’s former associates against the billionaire and his business partner, Eduard Shyfrin, that range from bribing Russian police to threats of kidnapping,
The judgment orders Michael Shtaif, a Calgary-based former Russian oil executive at the centre of the failed joint venture, to pay Mr. Shnaider’s Midland Group $46.1-million (U.S.) plus interest, or $59.56-million. Gregory Roberts, a Toronto-area lawyer and businessman, must also pay $59.56-million.
Two other men involved in the matter, convicted Toronto fraudster Irwin Boock (also known as John Howard) and another man, Stanton De Freitas, have each been ordered to pay $8.27-million (U.S.). Another former friend of Mr. Shnaider’s, Eugene Bokserman, must pay $1.5-million.
In a brief e-mail, Mr. Shtaif vowed to appeal: “Respectfully, I believe the case was wrongly and unfairly decided and I have retained counsel to appeal the decision.”
Mr. Roberts, who represented himself at last year’s trial, also said he will appeal the ruling.
“The judgment in my view amounts to an ambush,” he said in an e-mail.
Mr. Roberts said he was denied a “fair opportunity” to counter some of the allegations on which the judge made findings as, he said, they were not relied upon by Mr. Shnaider’s lawyers at the trial.
In a press release, Mr. Shnaider said that he pursued the lawsuit, rather than settle it quietly, in order to clear his name. The defendants had warned before the litigation began that they would make their allegations public, he said.
“Mr. Shyfrin and I were determined not to give in to threats,” Mr. Shnaider said.
Friday’s decision repeatedly rejects testimony provided by Mr. Shtaif. “I did not find him to be a credible witness,” the ruling reads, saying that he “failed to answer questions directly,” that his evidence was “often inconsistent” and that he failed to produce promised documents to back up his testimony.
The judge said she rejects Mr. Shtaif’s testimony that he was forced to sign a loan agreement in a Russian police station after an officer drew his gun.
As for Mr. Roberts, Justice Sanderson said she found much of his evidence “unreliable.”
She rules that he engaged in “deceit” and in a “breach of fiduciary duty” for failing to tell Mr. Shnaider that a man involved in the venture who called himself John Howard was actually Mr. Boock, who “had a criminal record and was using a false name to hide his criminal past.”
At the centre of the case was the setting up of a joint venture to buy underdeveloped Russian oil fields in 2006. Mr. Shnaider had insisted that his planned $50-million investment would be contingent on another investor adding $70-million, the judge’s ruling says.
Justice Sanderson ruled that Mr. Shtaif engaged in “fraudulent misrepresentation” for failing to tell Mr. Shnaider that a promised $8-million payment from the other investor had not materialized – a payment that was supposed to be the first instalment of the $70-million investment, which was actually committed by a shell company controlled by Mr. Boock.
Source
Judge orders Toronto billionaire’s ex-partners to pay millions
The Globe and Mail
JEFF GRAY - LAW REPORTER
Last updated Friday, Mar. 07 2014, 7:45 PM EST
A group of Alex Shnaider’s former business associates must hand over tens of millions of dollars for engaging in “fraudulent misrepresentation” and an “unlawful conspiracy” to lure the Toronto billionaire into investing about $50-million in a Russian oil joint venture, an Ontario Superior Court judge has ruled.
In an 166-page ruling issued late Friday afternoon, Justice Mary Anne Sanderson also completely rejects a list of sensational allegations made by Mr. Shnaider’s former associates against the billionaire and his business partner, Eduard Shyfrin, that range from bribing Russian police to threats of kidnapping,
The judgment orders Michael Shtaif, a Calgary-based former Russian oil executive at the centre of the failed joint venture, to pay Mr. Shnaider’s Midland Group $46.1-million (U.S.) plus interest, or $59.56-million. Gregory Roberts, a Toronto-area lawyer and businessman, must also pay $59.56-million.
Two other men involved in the matter, convicted Toronto fraudster Irwin Boock (also known as John Howard) and another man, Stanton De Freitas, have each been ordered to pay $8.27-million (U.S.). Another former friend of Mr. Shnaider’s, Eugene Bokserman, must pay $1.5-million.
In a brief e-mail, Mr. Shtaif vowed to appeal: “Respectfully, I believe the case was wrongly and unfairly decided and I have retained counsel to appeal the decision.”
Mr. Roberts, who represented himself at last year’s trial, also said he will appeal the ruling.
“The judgment in my view amounts to an ambush,” he said in an e-mail.
Mr. Roberts said he was denied a “fair opportunity” to counter some of the allegations on which the judge made findings as, he said, they were not relied upon by Mr. Shnaider’s lawyers at the trial.
In a press release, Mr. Shnaider said that he pursued the lawsuit, rather than settle it quietly, in order to clear his name. The defendants had warned before the litigation began that they would make their allegations public, he said.
“Mr. Shyfrin and I were determined not to give in to threats,” Mr. Shnaider said.
Friday’s decision repeatedly rejects testimony provided by Mr. Shtaif. “I did not find him to be a credible witness,” the ruling reads, saying that he “failed to answer questions directly,” that his evidence was “often inconsistent” and that he failed to produce promised documents to back up his testimony.
The judge said she rejects Mr. Shtaif’s testimony that he was forced to sign a loan agreement in a Russian police station after an officer drew his gun.
As for Mr. Roberts, Justice Sanderson said she found much of his evidence “unreliable.”
She rules that he engaged in “deceit” and in a “breach of fiduciary duty” for failing to tell Mr. Shnaider that a man involved in the venture who called himself John Howard was actually Mr. Boock, who “had a criminal record and was using a false name to hide his criminal past.”
At the centre of the case was the setting up of a joint venture to buy underdeveloped Russian oil fields in 2006. Mr. Shnaider had insisted that his planned $50-million investment would be contingent on another investor adding $70-million, the judge’s ruling says.
Justice Sanderson ruled that Mr. Shtaif engaged in “fraudulent misrepresentation” for failing to tell Mr. Shnaider that a promised $8-million payment from the other investor had not materialized – a payment that was supposed to be the first instalment of the $70-million investment, which was actually committed by a shell company controlled by Mr. Boock.
Source
Jasper Knabb and Stephen Durland Incarceration Update
JASPER KNABB is currently incarcerated at FCI Terminal Island (California) and is scheduled for release on October 18, 2030. The inmate is not eligible for parole. Please be assured that, unless otherwise requested, we will keep you informed of all significant release-related activities pertaining to this inmate during the period of incarceration.
Knabb is trying appeal his prison setenence.
_____________________________
STEPHEN DURLAND is currently incarcerated at FCI Estill (South Carolina) and is scheduled for release on June 7, 2014. The inmate is not eligible for parole. Please be assured that, unless otherwise requested, we will keep you informed of all significant release-related activities pertaining to this inmate during the period of incarceration.
This notice is to inform you that STEPHEN DURLAND has been approved for placement in a Community Corrections Center (CCC), otherwise known as a halfway house, and will transfer from this institution on January 15, 2014. After the transfer, the inmate will be located at Cornell Corrections, Inc. in San Francisco, California.
In addition to the information provided regarding this offender's CCC transfer, the following information is relevant to the inmate's eventual release. The inmate is scheduled to release on June 7, 2014. The inmate is not eligible for parole.
Upon release, the inmate will reside in San Francisco, California, and will be supervised by the United States Probation Office at USPO - Northern District of California - San Francisco, Northern District of California - San Francisco, Phillip Burton United States, Courthouse, Suite 17-6884, 450 Golden Gate Avenue, San Francisco, California 94102-3434.
Stephen Durland Will Move to a Halfway House in San Francisco
US Department of Justice Victim Notification System
U.S. Department of Justice
Federal Bureau of Prisons
FCI Estill
P.O. Box 699
100 Prison Road
Estill, SC 29918
Phone: (803) 625-4607
Fax: (803) 625-5629
October 02, 2013
RE: STEPHEN DURLAND
Register Number: 15637-111
Docket Number: 11-CR-00009
This notice is to inform you that STEPHEN DURLAND has been approved for placement in a Community Corrections Center (CCC), otherwise known as a halfway house, and will transfer from this institution on January 15, 2014. After the transfer, the inmate will be located at Cornell Corrections, Inc. in San Francisco, California.
In addition to the information provided regarding this offender's CCC transfer, the following information is relevant to the inmate's eventual release. The inmate is scheduled to release on June 7, 2014. The inmate is not eligible for parole.
Upon release, the inmate will reside in SAN FRANCISCO, California, and will be supervised by the United States Probation Office at USPO - Northern District of California - San Francisco, Phillip Burton United States, Courthouse, Suite 17-6884, 450 Golden Gate Avenue, San Francisco, California 94102-3434. Additionally, Client will be homeless.
Not likely. These crooks usually spend all of their winnings until their next scam. OSC will fine them, ban them from the securities industry and order them to pay back ill-gotten gains but these crooks will claim they are broke and can't pay back the money.
A criminal complaint by the Canadian or US government is necessary to go after their assets and put them in prison.
OSC - Notice from the Office of the Secretary
September 17, 2013
Source: http://www.osc.gov.on.ca/en/Proceedings_enr_20130917_boocki.htm
IN THE MATTER OF IRWIN BOOCK, STANTON DEFREITAS, JASON WONG, SAUDIA ALLIE, ALENA DUBINSKY, ALEX KHODJAIANTS SELECT AMERICAN TRANSFER CO., LEASESMART, INC., ADVANCED GROWING SYSTEMS, INC., INTERNATIONAL ENERGY LTD., NUTRIONE CORPORATION, POCKETOP CORPORATION, ASIA TELECOM LTD., PHARM CONTROL LTD., CAMBRIDGE RESOURCES CORPORATION, COMPUSHARE TRANSFER CORPORATION, FEDERATED PURCHASER, INC., TCC INDUSTRIES, INC., FIRST NATIONAL ENTERTAINMENT CORPORATION, WGI HOLDINGS, INC. and ENERBRITE TECHNOLOGIES GROUP
TORONTO – Following the hearing on the merits in the above noted matter, the Commission issued its Reasons and Decision.
The Commission also issued an Order which provides that the hearing to determine sanctions and costs will be held at the offices of the Commission at 20 Queen Street West, 17th floor, Toronto, ON, on November 12, 2013, at 10:00 a.m., or such further or other dates as agreed by the parties and set by the Office of the Secretary;
A copy of the Reasons and Decision and the Order dated September 13, 2013 are available at www.osc.gov.on.ca
Reasons and Decision:
http://www.osc.gov.on.ca/en/Proceedings_rad_20130913_boocki.htm
Order dated September 13, 2013:
http://www.osc.gov.on.ca/en/Proceedings_rad_20130913_boocki_2.htm
OFFICE OF THE SECRETARY
JOHN P. STEVENSON
SECRETARY
For media inquiries:
media_inquiries@osc.gov.on.ca
Carolyn Shaw-Rimmington
Manager, Public Affairs
416-593-2361
Aly Vitunski
Senior Media Relations Specialist
416-593-8263
Alison Ford
Media Relations Specialist
416-593-8307
For Investor Inquiries:
OSC Contact Centre
416-593-8314
1-877-785-1555 (Toll Free)
OSC - Notice from the Office of the Secretary
September 17, 2013
Source: http://www.osc.gov.on.ca/en/Proceedings_enr_20130917_boocki.htm
IN THE MATTER OF IRWIN BOOCK, STANTON DEFREITAS, JASON WONG, SAUDIA ALLIE, ALENA DUBINSKY, ALEX KHODJAIANTS SELECT AMERICAN TRANSFER CO., LEASESMART, INC., ADVANCED GROWING SYSTEMS, INC., INTERNATIONAL ENERGY LTD., NUTRIONE CORPORATION, POCKETOP CORPORATION, ASIA TELECOM LTD., PHARM CONTROL LTD., CAMBRIDGE RESOURCES CORPORATION, COMPUSHARE TRANSFER CORPORATION, FEDERATED PURCHASER, INC., TCC INDUSTRIES, INC., FIRST NATIONAL ENTERTAINMENT CORPORATION, WGI HOLDINGS, INC. and ENERBRITE TECHNOLOGIES GROUP
TORONTO – Following the hearing on the merits in the above noted matter, the Commission issued its Reasons and Decision.
The Commission also issued an Order which provides that the hearing to determine sanctions and costs will be held at the offices of the Commission at 20 Queen Street West, 17th floor, Toronto, ON, on November 12, 2013, at 10:00 a.m., or such further or other dates as agreed by the parties and set by the Office of the Secretary;
A copy of the Reasons and Decision and the Order dated September 13, 2013 are available at www.osc.gov.on.ca
Reasons and Decision:
http://www.osc.gov.on.ca/en/Proceedings_rad_20130913_boocki.htm
Order dated September 13, 2013:
http://www.osc.gov.on.ca/en/Proceedings_rad_20130913_boocki_2.htm
OFFICE OF THE SECRETARY
JOHN P. STEVENSON
SECRETARY
For media inquiries:
media_inquiries@osc.gov.on.ca
Carolyn Shaw-Rimmington
Manager, Public Affairs
416-593-2361
Aly Vitunski
Senior Media Relations Specialist
416-593-8263
Alison Ford
Media Relations Specialist
416-593-8307
For Investor Inquiries:
OSC Contact Centre
416-593-8314
1-877-785-1555 (Toll Free)
Brief for the United States as Appellee
September 3, 2013
Conclusion:
"For the reasons set forth above, this Court should affirm the judgment of the district court."
Download document here:
http://www.4shared.com/office/wIxbs9EA/20130903_Brief_for_the_United_.html
If he behaves in prison, he will be eligible for parole in 2030 with 5 years of probation before the federal government stop monitoring him.
Jasper Knabb Relocates to Terminal Island, California
Federal Bureau of Prisons Inmate Locator:
http://www.bop.gov/iloc2/LocateInmate.jsp
Name: JASPER KNABB
Register # 16044-111
Age-Race-Sex: 46-White-M
Release Date: 10-18-2030 (Parole Eligible)
Location: TERMINAL ISLAND FCI
FCI Terminal Island
The Federal Correctional Institution (FCI) in Terminal Island, California, is a low security facility housing male inmates.
FCI Terminal Island is located at the entrance to the Los Angeles Harbor, between San Pedro and Long Beach off Harbor Freeway (110 South) at the Terminal Island exit.
Judicial District: Central California
More Info: http://www.bop.gov/locations/institutions/trm/index.jsp
Jasper Knabb Relocates to Terminal Island, California
Federal Bureau of Prisons Inmate Locator:
http://www.bop.gov/iloc2/LocateInmate.jsp
Name: JASPER KNABB
Register # 16044-111
Age-Race-Sex: 46-White-M
Release Date: 10-18-2030 (Parole Eligible)
Location: TERMINAL ISLAND FCI
FCI Terminal Island
The Federal Correctional Institution (FCI) in Terminal Island, California, is a low security facility housing male inmates.
FCI Terminal Island is located at the entrance to the Los Angeles Harbor, between San Pedro and Long Beach off Harbor Freeway (110 South) at the Terminal Island exit.
Judicial District: Central California
More Info: http://www.bop.gov/locations/institutions/trm/index.jsp
Jasper Knabb Files for Appeal of Criminal Securities Fraud Judgment
Jasper Tries the Homer Simpson Defense
"I didn't do anything wrong. I was just selling shares."
http://www.4shared.com/folder/MUiEKCgi/02_USA_v_Jasper_Knabb_Stephen_.html
Evidence Database: http://PegasusEvidence.4shared.com
Booke and DeFreitas Involved in MGLG Shell Scam
TORONTO — The Globe and Mail
JEFF GRAY - LAW REPORTER
Published Tuesday, Apr. 02 2013, 7:00 PM EDT
Shnaider keen on Russian oil venture, ex-partner testifies
Toronto billionaire Alex Shnaider was so enthusiastic about an oil and gas venture proposed by former oil executive Michael Shtaif in 2005 that he wanted to invest $200-million, Mr. Shtaif told a courtroom on Tuesday.
Mr. Shtaif, a Canadian citizen of Russian origin who once worked as a senior official with Russian oil firms Yukos and TNK-BP, was in the witness box on Tuesday testifying in a tangled civil trial over his falling out with Mr. Shnaider.
In court documents, Mr. Shnaider has alleged that Mr. Shtaif was part of a scheme to defraud him, inducing him to invest $50-million with a promise of $70-million from other investors that never materialized. Mr. Shtaif denies the allegations. He alleges that Mr. Shnaider tried to push him out of the joint venture and bribed Russian police to investigate him for fraud, allegations Mr. Shnaider denies. The allegations have not been proven.
In a Toronto courtroom, Mr. Shtaif recounted the first meeting between the two men in November, 2005. They met at the Toronto offices of Mr. Shnaider’s company, Midland Resources Holding Ltd., with which the Russian-born Toronto-based billionaire made his fortune in the Eastern European steel business.
Mr. Shtaif told court that the pair hit it off, with “similar personalities” and “similar interests,” over a two-hour meeting. And he testified that Mr. Shndaider was very interested in Mr. Shtaif’s plan to use his expertise to ferret out undervalued oil fields in Russia.
“As they say in baseball, I pitched him a fastball and he reacted,” Mr. Shtaif told court, saying he declined Mr. Shnaider’s initial offer of a $200-million investment for a 80-per-cent stake in Mr. Shtaif’s venture, as he did not want one dominating shareholder.
They later agreed on a $50-million investment, for a 32-per-cent share, Mr. Shtaif said, although Mr. Shnaider would later try to “squeeze” a larger share, he said.
Mr. Shtaif said he was unaware at that time that a purported Toronto investor in his venture, who used the named John Howard, was allegedly a man named Irwin Boock, who according to court documents, has faced Ontario Securities Commission proceedings and criminal charges related to fraud. It was Mr. Boock who had provided the shell company, called Magellan Energy Ltd. (MGLG), to become the corporate vehicle for the joint venture.
But the company, it is alleged, turned out to be a fraudulently created “sham,” Mr. Shtaif said. Another associate of Mr. Boock, Magellan board member Stanton DeFreitas, was also allegedly secretly selling “illegal” shares in the company and failing to pass the proceeds onto Magellan, Mr. Shtaif testified. (Both Mr. Boock and Mr. DeFreitas were also named as defendants in Mr. Shnaider’s lawsuit.)
Mr. Shtaif told court that Mr. Shnaider ended up with 1.4 million “illegal shares” from Mr. DeFreitas, although the billionaire said the purchase was “inadvertent.” Mr. Shtaif denied that he received any of these shares.
Mr. Shtaif, after learning of the problems, initially sued Mr. Howard and others over the issue in the United States but then dropped the lawsuit “reluctantly,” he testified, in order to protect Mr. Shnaider from being accused publicly of being involved in the “illegal distribution” of shares.
“I think that there was a lot of backdoor dealings going on between Mr. Shnaider, Mr. DeFreitas, and whoever, that we as the board of Magellan knew nothing about,” Mr. Shtaif told court.
Mr. Shnaider “should not have received those shares and he knew and should have known better than that,” Mr. Shtaif said.
Mr. Shtaif denied that he intentionally misled Mr. Shnaider about the $70-million investment pledged by a company allegedly controlled by the man calling himself Mr. Howard, which never materialized.
He told the court that he relied on word from Mr. DeFreitas when he told Mr. Shnaider in an e-mail that the first $10-million instalment of the $70-million had been paid: “I never intentionally or meant to mislead anybody at any time.”
Source
Booke and DeFreitas Involved in MGLG Shell Scam
TORONTO — The Globe and Mail
JEFF GRAY - LAW REPORTER
Published Tuesday, Apr. 02 2013, 7:00 PM EDT
Shnaider keen on Russian oil venture, ex-partner testifies
Toronto billionaire Alex Shnaider was so enthusiastic about an oil and gas venture proposed by former oil executive Michael Shtaif in 2005 that he wanted to invest $200-million, Mr. Shtaif told a courtroom on Tuesday.
Mr. Shtaif, a Canadian citizen of Russian origin who once worked as a senior official with Russian oil firms Yukos and TNK-BP, was in the witness box on Tuesday testifying in a tangled civil trial over his falling out with Mr. Shnaider.
In court documents, Mr. Shnaider has alleged that Mr. Shtaif was part of a scheme to defraud him, inducing him to invest $50-million with a promise of $70-million from other investors that never materialized. Mr. Shtaif denies the allegations. He alleges that Mr. Shnaider tried to push him out of the joint venture and bribed Russian police to investigate him for fraud, allegations Mr. Shnaider denies. The allegations have not been proven.
In a Toronto courtroom, Mr. Shtaif recounted the first meeting between the two men in November, 2005. They met at the Toronto offices of Mr. Shnaider’s company, Midland Resources Holding Ltd., with which the Russian-born Toronto-based billionaire made his fortune in the Eastern European steel business.
Mr. Shtaif told court that the pair hit it off, with “similar personalities” and “similar interests,” over a two-hour meeting. And he testified that Mr. Shndaider was very interested in Mr. Shtaif’s plan to use his expertise to ferret out undervalued oil fields in Russia.
“As they say in baseball, I pitched him a fastball and he reacted,” Mr. Shtaif told court, saying he declined Mr. Shnaider’s initial offer of a $200-million investment for a 80-per-cent stake in Mr. Shtaif’s venture, as he did not want one dominating shareholder.
They later agreed on a $50-million investment, for a 32-per-cent share, Mr. Shtaif said, although Mr. Shnaider would later try to “squeeze” a larger share, he said.
Mr. Shtaif said he was unaware at that time that a purported Toronto investor in his venture, who used the named John Howard, was allegedly a man named Irwin Boock, who according to court documents, has faced Ontario Securities Commission proceedings and criminal charges related to fraud. It was Mr. Boock who had provided the shell company, called Magellan Energy Ltd. (MGLG), to become the corporate vehicle for the joint venture.
But the company, it is alleged, turned out to be a fraudulently created “sham,” Mr. Shtaif said. Another associate of Mr. Boock, Magellan board member Stanton DeFreitas, was also allegedly secretly selling “illegal” shares in the company and failing to pass the proceeds onto Magellan, Mr. Shtaif testified. (Both Mr. Boock and Mr. DeFreitas were also named as defendants in Mr. Shnaider’s lawsuit.)
Mr. Shtaif told court that Mr. Shnaider ended up with 1.4 million “illegal shares” from Mr. DeFreitas, although the billionaire said the purchase was “inadvertent.” Mr. Shtaif denied that he received any of these shares.
Mr. Shtaif, after learning of the problems, initially sued Mr. Howard and others over the issue in the United States but then dropped the lawsuit “reluctantly,” he testified, in order to protect Mr. Shnaider from being accused publicly of being involved in the “illegal distribution” of shares.
“I think that there was a lot of backdoor dealings going on between Mr. Shnaider, Mr. DeFreitas, and whoever, that we as the board of Magellan knew nothing about,” Mr. Shtaif told court.
Mr. Shnaider “should not have received those shares and he knew and should have known better than that,” Mr. Shtaif said.
Mr. Shtaif denied that he intentionally misled Mr. Shnaider about the $70-million investment pledged by a company allegedly controlled by the man calling himself Mr. Howard, which never materialized.
He told the court that he relied on word from Mr. DeFreitas when he told Mr. Shnaider in an e-mail that the first $10-million instalment of the $70-million had been paid: “I never intentionally or meant to mislead anybody at any time.”
Source
Irwin Boock, Stanton B.J. Defreitas, Nicolette D. Loisel, Roger L. Shoss and Jason C. Wong are CAREER CRIMINALS who should be sent to PRISON for 20 YEARS.
Here's the SEC Securities Fraud case against this gang of crooks.
SEC v Boock, Defreitas, et al
Jasper Knabb Prison Tracker
Inmate Locator: http://www.bop.gov/iloc2/LocateInmate.jsp
Name: JASPER KNABB
Register No: 16044-111
Age-Race-Sex: 46-White-M
Release Date (Projected): 10-18-2030
Location: SHERIDAN FCI
June 5, 2013 - Motion by Jasper Knabb for Court to Take Judicial Notice - He's Moving
http://www.4shared.com/office/GhR6Yz4L/20130605_Motion_by_Jasper_Knab.html
******
June 7, 2013 - Appellant Jasper Knabb's Brief to U.S. Court of Appeals (Updated)
http://www.4shared.com/office/2UmlOLBJ/20130607_Appellant_Jasper_Knab.html
******
June 7, 2013 - Motion by Jasper Knabb for Leave and Filing Extension
http://www.4shared.com/office/qV45kn4B/20130607_Motion_by_Jasper_Knab.html
******
June 10, 2013 - Court Order - Motion Granted for Extension to File
http://www.4shared.com/office/vdT1pkhT/20130610_Court_Order_-_Motion_.html
******
June 13, 2013 - Motion by Jasper Knabb for Time Extension to File Late Brief
http://www.4shared.com/office/IINL3idx/20130613_Motion_by_Jasper_Knab.html
Jasper Knabb's Sentencing Appeal - Signs of Desperation
June 5, 2013 - Motion by Jasper Knabb for Court to Take Judicial Notice - He's Moving
http://www.4shared.com/office/GhR6Yz4L/20130605_Motion_by_Jasper_Knab.html
******
June 7, 2013 - Jasper Knabb's Brief Opposing Court Appointed Counsel's Brief
http://www.4shared.com/office/gYrIDxIa/20130607_Jasper_Knabbs_Brief_O.html
******
June 7, 2013 - Motion by Jasper Knabb for Leave and Filing Extension
http://www.4shared.com/office/qV45kn4B/20130607_Motion_by_Jasper_Knab.html
******
June 10, 2013 - Court Order - Motion Granted for Extension to File
http://www.4shared.com/office/vdT1pkhT/20130610_Court_Order_-_Motion_.html
******
June 13, 2013 - Motion by Jasper Knabb for Time Extension to File Late Brief
http://www.4shared.com/office/IINL3idx/20130613_Motion_by_Jasper_Knab.html
Ask Christine aka GorgeousLongLegs@yahoo.co.uk
Christine Cowell
105 Reading Road
Finchampstead, Wokingham,
Berkshire RG40 4RD
United Kingdom
Phone: 0118 973 0804
Other occupants: David J Nickless
Looks like she changed the name of her business.
Domestic House Cleaners (Christine's Business)
105 Reading Road,
Finchampstead, Wokingham,
Berkshire RG40 4RD
United Kingdom
Tel: 01189 100 043 or 07810 333199
e-mail: info@domestichousecleaners.com
Web: http://www.domestichousecleaners.com/
HAPPY ANNIVERSARY JASPER KNABB - 1 YEAR AGO
San Francisco Chronicle
Ex-Pegasus CEO gets 21-year sentence for fraud
Bob Egelko, Staff writer, begelko@sfchronicle.com
Thursday, June 7, 2012
The former chief executive of Pegasus Wireless Corp. was sentenced Thursday to 21 years in federal prison - nearly three times as long as the term sought by prosecutors - for a multimillion-dollar stock fraud that led to the bankruptcy of the Fremont technology company.
U.S. District Judge Jeffrey White of San Francisco told Jasper Knabb he had caused "unspeakable ... misery" to investors who had lost their life savings. White said Knabb had concealed his funds and might commit new frauds "if given the opportunity." He ordered Knabb jailed immediately after the hearing.
The Securities and Exchange Commission has ordered Knabb to repay $40.8 million that he allegedly reaped from stock sales. Prosecutors acknowledged in a court filing that Knabb would be unable to make that payment.
Knabb, 46, pleaded guilty in July to securities fraud and conspiracy. Pegasus' former chief financial officer, Stephen Durland, pleaded guilty to similar charges in March 2011 and was sentenced by White in October to two years and nine months in prison. Prosecutors said Durland made $2.1 million from fraudulent stock sales.
Starting in 2005, when Pegasus was founded, prosecutors said, Knabb and Durland issued nearly half a billion shares to friends and associates to pay off a fictitious company debt, then pocketed the proceeds when the shares were sold for inflated prices.
When the scheme came to light, the stock price fell from more than $18 per share to less than $1 in four months. Pegasus filed for bankruptcy in 2008 and has relocated to Florida.
Prosecutors sought a sentence of seven years and three months, the maximum recommended by federal guidelines, saying they were bound by their plea agreement with Knabb, and credited him for admitting his guilt. Defense lawyers asked for three years and four months, saying Knabb had fully accepted responsibility and was not concealing his assets.
But White said the court's probation office had found that Knabb had hidden assets and could not be trusted. "His instinct has always been to lie and cheat," the judge said.
Source: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/06/07/BUSG1OUITK.DTL
Inmate Locator: http://www.bop.gov/iloc2/LocateInmate.jsp
Name: JASPER KNABB
Register No: 16044-111
Age-Race-Sex: 46-White-M
Release Date (Projected): 10-18-2030
Location: SHERIDAN FCI
I think they are two-of-a-kind.
She is lucky that Judge White didn't go after her primarily because she had a new born.
Jasper won't be eligible for parole for 17 years if he behaves during his 20 year sentence.
The ski accessory business that Jasper helped her start up is all but shut down. http://skadinordic.com
I don't know how she can afford to maintain mortgage payments, car payments and raise a kid without assistance. Maybe there is a cash buried in the backyard.
The good guys won this time. We would not take no for an answer from the SEC and DOJ. DOJ wanted a quick-and-easy plea deal agreement but the probation office and Judge White took the time to learn exactly what occured.
CFO Steve Durland was asking for 1 year and he was sentenced to 3 years.
CEO Jasper Knabb was asking for 5 years and he was sentenced to 20 years.
http://PegasusEvidence.4shared.com
Jasper Knabb's wife, Laura Valaas, has filed for divorce and appears to be keeping the two houses that were acquired in East Wenatchee, WA.
She sold all of Knabb's clothes and other loose ends like expensive guitars on eBay.
http://wheresthemoney.4shared.com
We don't know what happened to the proceeds of the sheriff's sale of Jasper and Tammy Knabb's house in Anchorage, Alaska.
I guess the SEC is keeping it.
Send a letter to Judge White and the SEC San Francisco division for more info.
http://www.PegasusEvidence.4shared.com
Jasper Knabb's Appeal of the 21 Year Sentence
March 14, 2013
Case No. 12-10325
D.C. No. 3:11-cr-00009-JSW-2
Northern District of California,
San Francisco
COURT ORDER
The motion of Renée Paradis, Esq., to withdraw as counsel of record under Anders v. California, 386 U.S. 738 (1967), is referred to the panel assigned to hear the merits of this appeal. The panel will conduct an independent review of the record. See Penson v. Ohio, 488 U.S. 75, 80 (1988). After it conducts its review, the merits panel will determine whether counsel will be allowed to withdraw and whether new counsel will be appointed. See id. at 83-84.
Appellant may file a pro se supplemental opening brief raising any issues by April 25, 2013. On or before May 28, 2013, appellee shall file the answering brief or notify this court by letter that no answering brief will be filed. If appellee files the answering brief, the optional reply brief will be due within 14 days after service of the answering brief.
The clerk of the district court shall forward to this court the clerk’s record within seven days of receipt of this order. See 9th Cir. R. 11-4.4.
The Clerk shall serve a copy of this order on appellant Jasper Knabb individually at Reg. No. 16044-111, FCI Sheridan, Federal Correctional Institution, P.O. Box 5000, Sheridan, OR 97378, as well as on counsel for appellant.
Shareholder Evidence Database: http://PegasusEvidence.4shared.com
The SEC has not announced a Disgorgment Fund to date. I will post the contact info for the SEC and Judge White so we can keep the pressure on.
Shareholder Ownership of Amax Corp. (Fremont, CA)
I haven't seen any news coming out of the SEC regarding a disgorgement fund for former shareholders. According to SEC filings, Pegasus Wireless paid $4 million cash and $4 million in shares for a 51% ownership of Amax Corp.
Contact the SEC San Francisco office and Honorable Judge Jeffrey White if you think the SEC is not doing their job. I don't think the SEC is doing their job!!!!
Jasper Knabb Files Motion for Extension to File Supplemental Brief
COMES NOW, Jasper Knabb,the Appellant, pro se,hereby, respectfully "Moves" to grant him an Extension of Appointed Counsel's Anders this Honorable Appellate Court, for the Ninth Circuit Time to File a pro se Supplemental Brief objecting to Brief, due the complexity of the case, agreement.
Additionally, the Appellant, herein respectfully "Prays" this Honorable Court will grant him Leave to file said Supplemental Brief. The appellant asserts there are issues not raised within the Anders' brief that are in his favor.
WHEREFORE, the foregoing reasons, the appellant "prays" this Honorable Court will grant leave to supplement and an extension of time.
Download here
Evidence Database
Lawyer Wants Out of Jasper Knabb Appeal Effort - Wenatchee World
http://www.wenatcheeworld.com/news/2013/jan/09/lawyer-wants-out-of-knabb-appeal-effort/
Shareholder Evidence Database: http://PegasusEvidence.4shared.com
Jasper Knabb Connection to Christian Eduardo Esquino Nunez, Starwood Management LLC, and Jenni Rivera
I don't believe that Jasper Knabb's criminal behavior was fully investigated and uncovered by the Department of Justice or the SEC. Our federal government employees saw this as a simple plea deal case in which Durland and Knabb would agree to 3 to 6 years respectively and then sentenced to 1 to 3 years based on lack of never being caught in the past. Research shows both had been running publicly-listed securities "pump-and-dumps" for the past 10 years.
Based on our team's research of Knabb's Gulfstream II and Learjet, I did know that one of the shell companies used by Knabb to own aircraft was connected to Christian Eduardo Esquino aka Ed Nunez. The names of the shell companies were STARWOOD MANAGEMENT LLC and WING FINANCIAL LLC, both located at the same address in Las Vegas, Nevada. The manager of both shell companies is Norma Gonzalez. Norma Gonzalez also happens to be the name of the person who wired money from Webster Bank in Waterbury, CT to Knabb's pilots when they had to pay for fuel and other expenses. Apparently, Jasper Knabb was laundering his money at Webster Bank where a Pegasus Wireless director named Eric Lutz happened to be Senior VP, Producing Regional Manager in Webster Bank’s Financial Advisors business, working with ultra high net worth clients.
Why did DOJ only settle for plea deals for a fake company that became listed on the NASDAQ, reached a market cap of $1.2 billion, was purchased by all Russell 1000 and 2000 mutual funds, and was shorted down to zero by the investment banks that helped to get it listed on the NASDAQ ?
Where is Poolguppy ? Maybe he can let us know if Knabb was trafficking drugs during his frequent flights between Florida, Grand Bahama and Turks and Caicos.
http://www.cnn.com/2012/12/11/us/mexico-plane-ownership/index.html
Pegasus Wireless Evidence Database: http://PegasusEvidence.4shared.com
Jasper Knabb Connection to Eduardo Esquino-Nunez and Jenni Rivera
http://www.madcowprod.com/2012/12/12/exclusive-drug-traffickers-own-jenni-rivera-death-plane/
Shareholder Evidence Database: http://PegasusEvidence.4shared.com
Jasper Knabb Files Brief of Appeal on December 28, 2012
Under the 2011 Guidelines, an offense level of 34 and Mr. Knabb’s criminal history category of I results in a guideline range of 151 to 188 months.
The imposed sentence of 253 months thus represented an upward variance from the Guideline sentence. The sentencing court thus made three determinations that increased Mr. Knabb’s sentence that were not agreed to in the plea agreement: (1) a four-level upward adjustment under USSG §28 1.1 (b )(18)(A) for his status as a corporate officer; (2) a role adjustment for his status as a leader or organizer; and (3) an upward variance.
A. USSG §28 1.1 (b)(18)(A)
In his briefing below, Knabb objected to the USSG §28 1.1 (b )(18)(A) enhancement solely based on the claimed disparity between his sentence and that of his codefendant Durland, who was CFO of Pegasus but did not receive the enhancement. (Excerpts of Record, Vol. II, pp. 121-122.) The court noted in sentencing Mr. Knabb that Durland had had a subordinate role to Knabb and that Durland had only netted $2.9 million from the scheme, versus the tens of millions Knabb had received. (Sentencing Hearing, Excerpts of Record, Vol. I, pp. 3-4.) Where coconspirators are not similarly situated, disparity between their sentences does not general make a sentence substantively unreasonable. United States v. Carter, 560 F.3d 1107, 1121 (9th Cir. 2009).
B. Leader or Organizer
Knabb objected to his four-point role adjustment under USSG §3B1.1(a) based inter alia on the fact that many of the “participants” in his scheme were unwitting. He asserted only Durland was a witting accomplice. The court specifically found that it could not determine by a preponderance of the evidence whether other participants in the scheme were aware of its illegality. (Sentencing Hearing, Excerpts of Record Vol. III, at p.81 (“Whether they were unwitting or not I don't know.”).) A criminal scheme can be “otherwise extensive” based on the number of unwitting participants as well as well as knowing accomplices. United States v. Booth, 309 F.3d 566, 576-577 (9th Cir. 2002).
C. Upward Variance
The district court gave Knabb a sentence that was 65 months above the Guidelines range, citing the repeated nature of Knabb’s criminal actions, investors who had lost significant money when Pegasus’s stock price plummeted that were not accounted for in the Guidelines calculation, a finding that Knabb had not been candid with the probation officer, and a long history of violations and misdemeanors which did not show “respect for the law”. (Sentencing Hearing, Excerpts of Record, Vol. I, pp. 1-7.)
CONCLUSION
For the foregoing reasons, appellate counsel respectfully requests that this Court grant her motion to be relieved and independently review the record in this case.
Download the 22 page document here: http://www.4shared.com/office/e2lpOw65/20121228_Brief_of_Appellant_Ja.html
Shareholder Evidence Database: http://PegasusEvidence.4shared.com
Jasper Knabb Still Pursues Appeal of 21 Year Sentence
Although Jasper Knabb's plea deal with the Department of Justice does not allow him to appeal the court's sentence, he is using a public defender to go through the motions of an appeal.
When will Laura Valaas divorce the love of her life, her everything, her all - her Sugar Daddy ?
Knabb's opening brief for the appeal is due December 28, 2012. Good luck with that Jasper.
http://www.4shared.com/office/s3QH-ufK/20121115_court_order_-_appella.html
Evidence Database: http://PegasusEvidence.4shared.com
We are still waiting for the SEC to set up a disgorgment fund with the $11 million that Knabb used to purchase a 51% controlling interest of several companies.
If You Want A Disgorgement Fund, Contact Federal Judge White and the SEC San Francisco Office
Why hasn't the SEC put together a disgorgement fund for victims of Jasper Knabb, Stephen Durland and Pegasus Wireless Corporation ?
Jasper Knabb used $11 million of his ill-gotten gains to purchase 51% of Amax Corporation (Fremont, CA) and two other companies.
I don't know if the SEC is going to sell these assets and set up a disgorgement fund.
Please Contact Judge White
Send a letter to the U.S. District Court Judge for both the SEC and DOJ complaints against Jasper Knabb and Stephen Durland and ask him why the SEC hasn't set up a disgorgement fund yet.
Honorable Jeffrey S. White
United States District Court
450 Golden Gate Avenue
San Francisco, CA 94102
http://www.cand.uscourts.gov/jsw
Refer to SEC Complaint CV 09-2302 filed in the Northern District of California - SEC vs Jasper Knabb, Stephen Durland, Pegasus Wireless Corporation
Contact the SEC San Francisco Office
U.S. Securities and Exchange Commission
Attn: Robert S. Leach, Branch Chief, Enforcement Division
44 Montgomery Street, Suite 2600
San Francisco, CA 94104
Phone: (415) 705-2353
Fax: (415) 705-2501
Email: LeachR@sec.gov
Email: SanFrancisco@sec.gov
SEC Inspector General: oig@sec.gov
Alena Dubinsky of Ontario Named as a Relief Defendant
U.S. Securities and Exchange Commission
Litigation Release No. 22516 / October 19, 2012
SEC v. Irwin Boock, et al., Civil Action No. 09 CV 8261 (S.D.N.Y) (DLC)
On October 17, 2012, the United States Securities and Exchange Commission filed an amended complaint naming Alena Dubinsky as a relief defendant in its pending civil injunctive action before the United States District Court for the Southern District of New York. The action stems from the hijacking of defunct or inactive publicly-traded companies and the unregistered offer and sale of securities. The amended complaint alleges that Dubinsky, a resident of Ontario, Canada, opened bank and brokerage accounts in Toronto at the behest of certain defendants through which were effected unregistered sales of securities and the deposit of at least $1 million in illicit proceeds. The Commission is seeking disgorgement.
The Commission acknowledges the assistance and cooperation of the Ontario Securities Commission.
Source: http://www.sec.gov/litigation/litreleases/2012/lr22516.htm
For further information, please see Litigation Release Nos. 21243 (October 8, 2009) and 22499 (September 28, 2012).
http://www.sec.gov/litigation/litreleases/2009/lr21243.htm
Alena Dubinsky of Ontario Named as a Relief Defendant
U.S. Securities and Exchange Commission
Litigation Release No. 22516 / October 19, 2012
SEC v. Irwin Boock, et al., Civil Action No. 09 CV 8261 (S.D.N.Y) (DLC)
On October 17, 2012, the United States Securities and Exchange Commission filed an amended complaint naming Alena Dubinsky as a relief defendant in its pending civil injunctive action before the United States District Court for the Southern District of New York. The action stems from the hijacking of defunct or inactive publicly-traded companies and the unregistered offer and sale of securities. The amended complaint alleges that Dubinsky, a resident of Ontario, Canada, opened bank and brokerage accounts in Toronto at the behest of certain defendants through which were effected unregistered sales of securities and the deposit of at least $1 million in illicit proceeds. The Commission is seeking disgorgement.
The Commission acknowledges the assistance and cooperation of the Ontario Securities Commission.
Source: http://www.sec.gov/litigation/litreleases/2012/lr22516.htm
For further information, please see Litigation Release Nos. 21243 (October 8, 2009) and 22499 (September 28, 2012).
http://www.sec.gov/litigation/litreleases/2009/lr21243.htm
USA v Jasper Knabb - Criminal Sentencing Day Court Transcript
PAGE 1 of 121
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
CASE NO. CR 11-0009 JSW
BEFORE THE HONORABLE JEFFREY S. WHITE, JUDGE
UNITED STATES OF AMERICA - PLAINTIFF
VS.
JASPER KNABB - DEFENDANT
____________________________
SAN FRANCISCO, CALIFORNIA
THURSDAY, JUNE 7, 2012
TRANSCRIPT OF PROCEEDINGS
APPEARANCES:
FOR PLAINTIFF:
JONATHAN D. SCHMIDT
ASSISTANT UNITED STATES ATTORNEY
450 GOLDEN GATE AVENUE
SAN FRANCISCO, CALIFORNIA 94102
FOR DEFENDANT:
MARK STUART GOLDROSEN, ATTORNEY AT LAW
255 KANSAS STREET
SUITE 340
SAN FRANCISCO, CA 94103
REPORTED BY: JAMES YEOMANS, CSR 4039, RPR - OFFICIAL REPORTER
COMPUTERIZED TRANSCRIPTION BY ECLIPSE
DOWNLOAD 121 PAGE TRANSCRIPT HERE:
http://www.4shared.com/office/GepTkVGn/20120607_USA_v_Jasper_Knabb_-_.html
Shareholder Evidence Database: http://PegasusEvidence.4shared.com
The Search for Knabb's Assets: http://WheresTheMoney.4shared.com
SEC Litigation Release No. 22499 - September 28, 2012
Securities and Exchange Commission v. Irwin Boock, et al., Civil Action No. 09 CV 8261 (S.D.N.Y) (DLC)
SEC Obtains Judgments and $12.9 Million in Monetary Relief Against Three Defendants Involved in 23 Corporate Hijackings
On August 2, 2012, the United States District Court for the Southern District of New York entered judgments against Irwin Boock, Jason C. Wong and Stanton B.J. DeFreitas for their involvement in hijacking 23 defunct or inactive publicly-traded companies and subsequently making unregistered offers and sales of billions of shares.
On March 26, 2010, the Court entered a default as to Boock and DeFreitas and imposed permanent injunctions against future violations of the registration provisions, Section 5 of the Securities Act of 1933, and the antifraud provisions, Securities Act 17(a) and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Court order also imposed a permanent bar against Boock and DeFreitas participating in any offering of a penny stock and a permanent bar against Boock serving as an officer or director of a publicly-traded company with a class of securities registered with the Commission.
On August 25, 2011, the Court entered summary judgment as to Wong on the Commission's claims under Securities Act Section 17(a) and Exchange Act Section 10(b) and Rule 10b-5. The Court also granted partial summary judgment as to Wong on the Commission's claims under Securities Act Section 5, finding that the evidence was sufficient to establish that Wong had violated the registration requirements in relation to 12 of the hijacked companies.
The judgments entered on August 2, 2012 hold Boock, Wong, and DeFreitas jointly and severally liable to pay $6,140,172 in disgorgement and $2,062,282 in prejudgment interest. The judgments also order Boock, Wong, and DeFreitas to pay civil penalties of $2,999,000, $1,560,000, and $130,000, respectively.
As noted in the Court's opinion and order issued at the same time as the judgments were entered, the Court imposed a lower penalty on DeFreitas based on his acceptance of responsibility and active cooperation with the Commission staff during the litigation. The judgment entered against Wong also permanently enjoins him from committing future violations of Securities Act Sections 5 and 17(a) and Exchange Act Section 10(b) and Rule 10b-5 thereunder and imposes a permanent penny stock bar and officer and director bar.
On September 24, 2012, the Commission instituted an order suspending a fourth defendant, Roger L. Shoss, from appearing or practicing as an attorney before the Commission pursuant to Rule 102(e)(2) of the Commission's Rules of Practice based on his felony conviction in United States v. Roger Shoss, et al., Case # 8:11-cr-00366-T-30TBM (M.D. Fla.). See In the Matter of Roger L. Shoss, Administrative Proceeding No. 3-15041 (Ex. Act Rel. No. 67914). The Commission's civil action against Shoss has been stayed pending the outcome of the criminal proceeding.
The Commission acknowledges the assistance and cooperation of the Ontario Securities Commission, the U.S. Attorney's Office for the Middle District of Florida in Tampa, the Tampa Field Offices of the U.S. Secret Service, U.S. Immigration and Customs Enforcement, and the Financial Industry Regulatory Authority.
http://www.sec.gov/litigation/litreleases/2012/lr22499.htm
__________
For further information, please see SEC Civil Complaint - Litigation Release No. 21243 (October 8, 2009).
http://www.sec.gov/litigation/litreleases/2009/lr21243.htm
You have to wait for Irwin Boock, Jason C. Wong and Stanton B.J. DeFreitas to pay back the ill-gotten gains to the SEC. The SEC will then set up a disgorgement fund and announce that you have to fill out a form to request a piece of the pie. There are no guarantees that these crooks will pay back the money. The shares will never trade again as far as I know. The company doesn't exist. It was all a scam that was pumped by fellow members of the Investors Hub.
Please Contact Judge White
Why hasn't the SEC put together a disgorgement fund for victims of Jasper Knabb, Stephen Durland and Pegasus Wireless Corporation ?
Jasper Knabb used $11 million of his ill-gotten gains to purchase 51% of Amax Corporation (Fremont, CA) and two other companies.
I don't know if the SEC is going to sell these assets and set up a disgorgement fund.
Send a letter to the U.S. District Court Judge for both the SEC and DOJ complaints against Jasper Knabb and Stephen Durland and ask him why the SEC hasn't set up a disgorgement fund yet.
Honorable Jeffrey S. White
United States District Court
450 Golden Gate Avenue
San Francisco, CA 94102
Refer to SEC Complaint CV 09-2302 filed in the Norther District of California - SEC vs Jasper Knabb, Stephen Durland, Pegasus Wireless Corporation
Also refer to DOJ Case: CR-11-00009-002 JSW filed in the Northern District California - USA vs Jasper Knabb and Stephen Durland
http://www.cand.uscourts.gov/jsw
_____________________________________
SEC Mailing Address
U.S. Securities and Exchange Commission
Attn: Robert S. Leach, Branch Chief, Enforcement Division
44 Montgomery Street, Suite 2600
San Francisco, CA 94104
Phone: (415) 705-2353
Fax: (415) 705-2501
E-Mail: LeachR@sec.gov or SanFrancisco@sec.gov
SEC Litigation Release No. 22499 - September 28, 2012
Securities and Exchange Commission v. Irwin Boock, et al., Civil Action No. 09 CV 8261 (S.D.N.Y) (DLC)
SEC Obtains Judgments and $12.9 Million in Monetary Relief Against Three Defendants Involved in 23 Corporate Hijackings
On August 2, 2012, the United States District Court for the Southern District of New York entered judgments against Irwin Boock, Jason C. Wong and Stanton B.J. DeFreitas for their involvement in hijacking 23 defunct or inactive publicly-traded companies and subsequently making unregistered offers and sales of billions of shares.
On March 26, 2010, the Court entered a default as to Boock and DeFreitas and imposed permanent injunctions against future violations of the registration provisions, Section 5 of the Securities Act of 1933, and the antifraud provisions, Securities Act 17(a) and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Court order also imposed a permanent bar against Boock and DeFreitas participating in any offering of a penny stock and a permanent bar against Boock serving as an officer or director of a publicly-traded company with a class of securities registered with the Commission.
On August 25, 2011, the Court entered summary judgment as to Wong on the Commission's claims under Securities Act Section 17(a) and Exchange Act Section 10(b) and Rule 10b-5. The Court also granted partial summary judgment as to Wong on the Commission's claims under Securities Act Section 5, finding that the evidence was sufficient to establish that Wong had violated the registration requirements in relation to 12 of the hijacked companies.
The judgments entered on August 2, 2012 hold Boock, Wong, and DeFreitas jointly and severally liable to pay $6,140,172 in disgorgement and $2,062,282 in prejudgment interest. The judgments also order Boock, Wong, and DeFreitas to pay civil penalties of $2,999,000, $1,560,000, and $130,000, respectively.
As noted in the Court's opinion and order issued at the same time as the judgments were entered, the Court imposed a lower penalty on DeFreitas based on his acceptance of responsibility and active cooperation with the Commission staff during the litigation. The judgment entered against Wong also permanently enjoins him from committing future violations of Securities Act Sections 5 and 17(a) and Exchange Act Section 10(b) and Rule 10b-5 thereunder and imposes a permanent penny stock bar and officer and director bar.
On September 24, 2012, the Commission instituted an order suspending a fourth defendant, Roger L. Shoss, from appearing or practicing as an attorney before the Commission pursuant to Rule 102(e)(2) of the Commission's Rules of Practice based on his felony conviction in United States v. Roger Shoss, et al., Case # 8:11-cr-00366-T-30TBM (M.D. Fla.). See In the Matter of Roger L. Shoss, Administrative Proceeding No. 3-15041 (Ex. Act Rel. No. 67914). The Commission's civil action against Shoss has been stayed pending the outcome of the criminal proceeding.
The Commission acknowledges the assistance and cooperation of the Ontario Securities Commission, the U.S. Attorney's Office for the Middle District of Florida in Tampa, the Tampa Field Offices of the U.S. Secret Service, U.S. Immigration and Customs Enforcement, and the Financial Industry Regulatory Authority.
http://www.sec.gov/litigation/litreleases/2012/lr22499.htm
__________
For further information, please see Litigation Release No. 21243 (October 8, 2009).
http://www.sec.gov/litigation/litreleases/2009/lr21243.htm
Jasper Knabb Sentence Appeal Schedule
Pacer Docket: 10/01/2012
Appellant Jasper Knabb opening brief due 10/23/2012.
Appellee United States of America answering brief due 11/23/2012. The optional reply brief is due 14 days after service of the appellee brief.
Federal Bureau of Prisons - Jasper Knabb - Initial Designation
U.S. Department of Justice
Federal Bureau of Prisons
FCI Sheridan
P.O. Box 8000
Sheridan, OR 97378
Phone: (503) 843-4442
Fax: (503) 843-6645
September 24, 2012
RE: Initial Designation
JASPER KNABB
Register Number: 16044-111
Docket Number: 11-CR-00009
Dear Victim of Jasper Knabb:
You have requested to receive notifications regarding JASPER KNABB, an inmate incarcerated at this facility. Notification is being provided via the Victim Notification System (VNS). The VNS is designed to provide you with information regarding the case as it proceeds through the criminal justice system. You may obtain current information about this matter on the Internet at https://www.notify.usdoj.gov or from the VNS Call Center at 1-866-DOJ-4YOU* (1-866-365-4968*) (TDD/TTY: 1-866-228-4619) (International: 1-502-213-2767). In addition, you may use the Call Center or Internet to update your contact information and/or change your decision about participation in the notification program. If you update your information to include a current email address, VNS will send information to that address.
We will make every effort to ensure your participation in the notification program remains confidential. However, if this inmate learns through other means that you are receiving notification and threatens or attempts to intimidate you in any manner, please notify both the U.S. Attorney in the district where the inmate was prosecuted and this institution.
JASPER KNABB is currently incarcerated at FCI Sheridan and is scheduled for release on October 18, 2030. The inmate is not eligible for parole.
Please be assured that, unless otherwise requested, we will keep you informed of all significant release-related activities pertaining to this inmate during the period of incarceration.
Sincerely,
Marion Feather
Warden
Correctional Programs Branch
Federal Bureau of Prisons - Stephen Durland - Initial Designation
U.S. Department of Justice
Federal Bureau of Prisons
FCI Estill
P.O. Box 699
100 Prison Road
Estill, SC 29918
Phone: (803) 625-4607
Fax: (803) 625-5629
September 24, 2012
RE: Initial Designation
STEPHEN DURLAND
Register Number: 15637-111
Docket Number: 11-CR-00009
Dear Victim of Stephen Durland:
You have requested to receive notifications regarding STEPHEN DURLAND, an inmate incarcerated at this facility. Notification is being provided via the Victim Notification System (VNS). The VNS is designed to provide you with information regarding the case as it proceeds through the criminal justice system. You may obtain current information about this matter on the Internet at https://www.notify.usdoj.gov or from the VNS Call Center at 1-866-DOJ-4YOU* (1-866-365-4968*) (TDD/TTY: 1-866-228-4619) (International: 1-502-213-2767). In addition, you may use the Call Center or Internet to update your contact information and/or change your decision about participation in the notification program. If you update your information to include a current email address, VNS will send information to that address.
We will make every effort to ensure your participation in the notification program remains confidential. However, if this inmate learns through other means that you are receiving notification and threatens or attempts to intimidate you in any manner, please notify both the U.S. Attorney in the district where the inmate was prosecuted and this institution.
STEPHEN DURLAND is currently incarcerated at FCI Estill and is scheduled for release on May 27, 2014. The inmate is not eligible for parole.
Please be assured that, unless otherwise requested, we will keep you informed of all significant release-related activities pertaining to this inmate during the period of incarceration.
If at any time you have any questions or concerns regarding this program or the offender's status, please do not hesitate to contact me at the above address or you may telephone the VNS Call Center.
Sincerely,
M. L. Rivera
Warden
Correctional Programs Branch