KVMD/ESSI/ASNT - Giguiere + Lindsay
I still can't figure out how Michael Forster avoided being part of the Indictment. He must have been the cooperating individual. He was already being investigated for securities fraud. Maybe he worked out a deal to cooperate and get his partners busted in exchange for some kind of get out of jail free card or something.
Here is the DOJ release https://www.justice.gov/usao-sdca/pr/eight-defendants-indicted-stock-fraud-related-offenses
Here is the Indictment against Gannon Giguiere and Oliver Lindsay: https://promotionstocksecrets.com/wp-content/uploads/2018/07/GiguiereIndictment.pdf
They say in the Indictment that the cooperating witness was a stock promoter from California which describes Michael Forster perfectly
Here is the SEC Complaint against Gannon Giguiere, Oliver Lindsay, Andrew Hackett, Annetta Budhu, and Kevin Gillespie: https://www.sec.gov/litigation/complaints/2018/comp24201.pdf
Here is the Indictment against Andrew Hackett, Vikram Khanna, Kuldeep Sidhu, Annetta Budhu, and Kevin Gillespie: https://promotionstocksecrets.com/wp-content/uploads/2018/07/Hackett.pdf
Vikram Khanna had been sued by the SEC in the past in a case against Belmont Partners (Joseph Meuse) and some others: https://promotionstocksecrets.com/wp-content/uploads/2018/07/Khanna.pdf
Here is the Indictment against Luke Zouvas for his part: https://promotionstocksecrets.com/wp-content/uploads/2018/07/zouvas.pdf
As you know Zouvas had a lot of problems at the moment: https://www.goodetrades.com/2018/07/lawyer-luke-zouvas-indicted-he-has-worked-for-many-pump-and-dumps/
Interesting that Gannon Giguiere controlled http://www.themoneystreet.com
which was used to promoted all of the Issuers mentioned in the litigation. I know themoneystreet.com recently promoted QBIO and DOGZ which as far as I know weren't Giguiere/Forster tickers.
Here is some notes from some of my old research:
On September 18, 2014, the DOJ notified Michael Forster via certified letter that they were opening an investigation. http://promotionstocksecrets.com/wp-content/uploads/2015/12/Screen-Shot-2015-12-19-at-10.44.34-AM.png
On February 18, 2015, Michael Forster was served with a Subpoena from the SEC ordering him to provide the following information: http://promotionstocksecrets.com/wp-content/uploads/2015/12/ForsterSubpoena.pdf
- all agreements, documents, communications (basically anything) having to do with Harmon David Kavrell (a broker at Monarch Bay Securities LLC - which is market maker MBAY)
- all communications and documents concerning any contact with any broker at MBAY including but not limited to Joseph Vigliarolo
- all documents and communications with COR Clearing LLC or any of its agents including but not limited to Steve Gribben or Gribben & Associates LLC
- all documents and communications with MicroCap Innovations LLC or any of its employees including but not limited to Laurie Mazzarella
- and basically anything having to do with stock promotions that Michael Forster participated in
Obviously, the SEC believed that Michael Forster was involved in "pump and dump" activity without properly disclosing his ownership in the stocks he was promoting. The SEC is very interested in any stock promotions that Michael Forster was involved with and had concerns that David Kavrell of MBAY was accepting bribes from Forster to help with the market manipulation of those stocks. Laurie Mazzarella, who is an active participant in hundreds of penny stock paid promotions through MicroCap Innovations LLC, and COR Clearing LLC, who will help clear stock for pretty much anybody regardless of how dirty the transactions may be, are also of interest to the SEC. More information in this article: https://www.reuters.com/article/sec-lawsuit-pumpanddump-idUSL1N10I2FT20150807
In September of 2015, the SEC submitted an Order to show cause to get the court to approve the Subpoena that Foster was fighting against. http://promotionstocksecrets.com/wp-content/uploads/2015/12/ForsterSwanson.pdf
In that submission we get a lot more details about Forster and his activity including his relationship with Amy Chaffe. According to the SEC, Amy Chaffe aka Amy Swanson aka Kensington Forster (who was listed as 39 years old by the SEC) is Michael Forster's girlfriend and Michael Forster used her as a front for most of his business transactions. In particular, Amy Chaffe was listed as the controlling officer of the following Michael Forster entities - Gidapis LLC and Kensington Marketing LLC.
The SEC claimed that Micheal Forster used two entities he created (SLO 3 Holdings LLC and OTC Media LLC) and the two entities created by Amy Chaffe aka Amy Swanson (Gidapis LLC and Kensington Marketing LLC) to open bank accounts at Wells Fargo Bank between 2008 - 2014 then through those bank accounts, Forster frequently sent money to various microcap issuers and stock promoters, including Laurie Mazzarella and her nominee Microcap Innovations LLC.
The SEC also claimed that through documents they obtained they found that Micheal Forster opened an account at Monarch Bay Securities under the name Amy Swanson in October 2013 which was used for trading in the penny stock tickers that Michael Forster was involved in promoting. In particular, between March 2014 and February 2015, Michael Forster and David Kavrell of Monarch Bay Securities (MBAY) texted back and forth more than 400 times discussing trading. Michael Forster also maintained a trading account under his own name at Titan Securities in Belize and at E-trade, and an account under the name of a relative of Amy Chaffe at Fidelity. Michael Forster communicated via email about depositing securities in brokerage accounts that have clearing arrangements with COR Clearing LLC, and Michael Forster communicated with Laurie Mazzarella through skype. The SEC also alleges that Michael Forster was active in the promotion of the penny stock companies through 3 penny stock promotion websites he set up - Openingbellreport.com, Stockmailer.com, and OTCMediaLLC.com.
On December 10, 2015, the courts sided with Michael Forster and the Subpoena was quashed leaving the SEC to continue its investigation without being able to gain access to the documents it was requesting from Michael Forster http://promotionstocksecrets.com/wp-content/uploads/2015/12/FosterQuash.pdf
Even with the SEC and DOJ breathing down his neck, Michael Forster used his girlfriend, Amy Swanson Chaffe, to front for him while running a high profile paid promotion using CLOW in early 2016. http://promotionstocksecrets.com/cloudweb-inc-frmgd-soon-clou-stock-research-report/
Forster probably made a fortune from CLOW then used some of those proceeds to pay for a nice elaborate wedding when he married Amy Chaffe on April 16, 2016.
Forster also used Amy Swanson Chaffe's mother, Leisa Swanson, to front for him when he set up the Valeritas Holdings Inc (VLRX) shell.
And Forster used Amy Swanson's cousin, Kristy Pedotti, to front for him when he set up the Vet Online Supply Inc (VTNL) shell. http://promotionstocksecrets.com/vet-online-supply-inc-vtnl-stock-research-report/
VLRX went on to get acquired and moved to the NASDAQ. VTNL became a pretty massive pump&dump.
Gannon Giguiere gets a mention in that VTNL research as well as some earlier other research reports I did for EVTI, ASNT, and ESSI.
CLOW recently did a 1:400 reverse split then created 5,000,000 new free trading shares using debt conversions at $.005/share
On October 27, 2017, a majority of stockholders of the Company and board of directors approved a reverse stock split of our issued and outstanding shares of common stock on a basis of up to four hundred (400) old shares for one (1) new share of common stock. On November 30, 2017, FINRA approved the reverse stock split. The outstanding shares have been restated retroactively.
On January 2, 2018, the four non-affiliated holders of the convertible notes at principal amount of $34,000 issued on July 1, 2017 elected to convert $5,000 principal portion of their notes for 1,000,000 shares of common stock at $0.005 per share. An aggregate $20,000 principal amount of the four convertible notes were converted for 4,000,000 common shares.
Those 5,000,000 shares could have easily been dumped at over $.40/share average making some $2m+ in profits
CLOW reminds me of PTCO the way they keep doing reverse splits then converting insider owned debt transferred into offshore accounts at way way way under the market price to use for rinse/wash/repeat pump&dump action.
Anyways, the SEC/DOJ coming down on this group was long over due.
ESSI got suspended in 2017 https://www.sec.gov/litigation/suspensions/2017/34-80737.pdf
But when KVMD got suspend in March and they mention "manipulative transactions" in the suspension notice https://www.sec.gov/litigation/suspensions/2018/34-82903.pdf
I had a feeling that an Indictment might be coming https://investorshub.advfn.com/boards/read_msg.aspx?message_id=139423670
I guess we'll see if they eventually Indict Michael Forster too or if they are holding off on an Indictment until they can use him for a some more stings first.