Philip M Verges and SEC go to Court
SECURITIES AND EXCHANGE COMMISSION Case No.: 3:23:cv-02146
Plaintiff Securities and Exchange Commission this Complaint against Defendants Philip Verges, James D. Tilton, Jr., Robert F. Malin, Linda Malin, and Blue Citi, LLC, “Defendants”, and Relief Defendants SMEA2Z, LLC , 143 Partners LLC, West Cucharras, LLC, and JDT Trading, LLC, and alleges as follows:
From at least June 2017 to June 2022, Defendants—led by Philip M. Verges—perpetrated a scheme to pump and dump into the market more than $112 million of stock in certain penny stock companies. Verges designed the scheme so that Blue Citi (Case 3:23-cv-02146-D), Tilton, JDT, and other accomplices that Philip Verges nominated received heavily discounted shares in five penny stock companies: Alternet Systems, Inc. (“ALYI”), Priority Aviation, Inc. (“PJET”), Puration, Inc. (“PURA”), Vaycaychella, Inc. (“VAYK”), and WaterPure International, Inc. (“WPUR”) (collectively, the “PSCs” and individually, a “PSC”). The Nominees ultimately received at least 5.2 billion shares of stock in the PSCs at an 86.64% discount and then proceeded to dump those shares into the market. Blue Citi, Tilton, and JDT alone generated more than $52 million in trading proceeds.
