Of the various people involved here, I trust your motives above all. They are pure, simple, and honest:
My problem is with you. You duped me into becoming an officer of a criminal scheme and then concealed the operations (or lack thereof) of the business from me. You forged my name. You failed to pay me. You opened an account at Red Sea Management in my name without my authorization as you did for Pacheco. When I showed that share register to Pacheco showing how he has one share in an account you made, he came around and dropped the dime on you.
Good stocks are obvious. Extensive DD is how you convince yourself to buy a bad one.