Global Gateway Media & Comm. (fka GGMC)

[loniee]

the CEO is going down and he is trying one good last fling here..imo
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SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. ANTHONY MELLONE, ALEX PARSINIA, LARRY WILCOX,MACADA HOLDING, INC. f/k/a TRI-STAR HOLDINGS, INC., ZCOM NETWORKS, INC., and THE UC HUB GROUP, Defendants.
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COMPLAINT
Plaintiff Securities and Exchange Commission alleges as follows:
I. INTRODUCTION
1.
From no later than May 2008 through March 2009, Defendants Anthony Mellone, Tri-Star Holdings, Inc., Alex Parsinia, Zcom Networks, Inc., Larry Wilcox, and The UC Hub Group engaged in three related fraudulent kickback schemes for their respective companies’ stock in violation of the federal securities laws.
2.
Mellone, then the CEO of Tri-Star (the predecessor in interest to Macada Holding, Inc.), paid an illegal kickback to a purported employee pension fund trustee so the trustee would purchase 40 million restricted shares of Tri-Star stock. Days later, Mellone paid another kickback for a purchase of 50 million restricted shares of stock. Unbeknownst to Mellone, the corrupt trustee was actually an undercover FBI agent. The trustee’s business associate, who
Case 1:10-cv-23609-JAL Document 1 Entered on FLSD Docket 10/07/2010 Page 2 of 15
helped arrange the deal, was also an undercover agent, and another middleman was actually a witness cooperating with the FBI.
3.
Mellone, satisfied how the deal worked for his own company, sought to implement the same fraud with others. He informed Parsinia and Wilcox of the purportedly corrupt trustee, and both agreed to replicate the scheme for their own companies. Mellone demanded and received a $1,000 kickback from the witness for each completed restricted stock transaction he initiated.
4.
With Mellone acting as the middleman, Parsinia paid an illegal kickback to the trustee so he would purchase approximately 1.65 million restricted shares of Zcom stock. Days later, Parsinia paid another kickback for an additional purchase of 1.67 million shares of restricted stock. Mellone received a $1,000 kickback for each of the transactions.
5.
Likewise, Wilcox entered into a similar scheme. Wilcox paid a kickback to the trustee for the purchase of 800,000 restricted shares of UC Hub. Later, Wilcox agreed to pay another kickback for a second purchase of 800,000 restricted shares. Again, Mellone received $1,000 in cash for each transaction.
6.
In each instance, the Defendants attempted to conceal the kickback by entering into a consulting agreement with a phony company the trustee purportedly created to receive the kickback. Unbeknownst to the Defendants, the company was a fiction the FBI created for this sting.
7.
Mellone, Parsinia, and Wilcox created these schemes in an effort to generate the appearance of market interest in their respective companies, induce public purchases of their stock, and rapidly increase the stock’s trading price.
2
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http://www.sec.gov/litigation/complaints/2010/comp-pr2010-187-wilcox.pdf