News(?): Duo Sentenced To Over A Decade In Prison For 'Pump-and-Dump'
Last update: 10/29/2010 4:31:19 PM - DOW JONES NEWSWIRES
A securities attorney and a former stock broker were sentenced Friday to more than a decade in jail each and forfeit in excess of $43 million for their roles in a pump-and-dump stock manipulation scheme.
G. David Gordon, a securities attorney, and Richard Clark, a businessman and former stock broker, were convicted by a federal jury in Oklahoma on May 3 of more than a dozen counts each.
The duo allegedly, between 2004 and 2006, along with others to have manipulated three publicly traded penny stocks, equities that trade for less than $5 a share in the over-the-counter market rather than on national exchanges.
Two based in Tulsa at the time of the scheme were among those whose stock was manipulated: Deep Rock Oil & Gas Inc. (DPRK), and Global Beverage Solutions Inc. (GBVS), formerly known as Pacific Peak Investments. Clark is a former chief executive of Global Beverage. The third was National Storm Management Group Inc. (NSMG).
The Justice Department said in a statement Friday that evidence at trial showed the defendants hid and "parked" their shares with various people or entities, after which "they engaged in coordinated trading in order to create the appearance of an emerging market for these stocks, after which they conducted massive promotional campaigns in which unsolicited fax and e-mail 'blasts' were sent to millions of recipients."
Gordon, 48 years old, was sentenced to 188 months in prison while Brown, 62, received a 151-month sentence. Four others pleaded guilty in related cases while two remain at large.
-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com
(END) Dow Jones Newswires October 29, 2010 16:31 ET (20:31 GMT)
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My note: Perhaps this news will finally blow away the dark cloud that has hung over this small company. Hopefully, GBVS can get back on track and re-establish a good relationship with its shareholders( of which I R 1).
VV
