Also Street Wire (U-*SEC) U S Securities and Exchange Commission Also Street Wire (U-PBEC) Pacific Blue Energy Corp Also Street Wire (U-TSHO) Tradeshow Marketing Company Ltd
by Mike Caswell
San Diego securities lawyer Luis Carrillo has consented to a permanent restraining order and penny stock ban for his role in an $11-million pump-and-dump run from Surrey, B.C. (All figures are in U.S. dollars.) He accepted the ban as part of a case he faces from the U.S. Securities and Exchange Commission, which claims he aided a boiler room scheme that touted two pink sheets listings. The SEC says that Mr. Carrillo was a central participant in the scheme, drafting misleading regulatory filings and providing false legal opinions.
Mr. Carrillo's consent comes in a somewhat unusual letter his lawyer wrote to the judge on Wednesday, Sept. 2. The letter states that Mr. Carrillo will accept the permanent ban as well as a restraining order barring future violations. He will also stop defending the case "with regret" and accepts the fact that the SEC may win a default judgment against him. The letter is unusual because such offers are ordinarily part of settlement negotiations, with successful efforts resulting in both sides agreeing on a court order for the judge to accept (and unsuccessful ones resulting in further litigation).
The case against Mr. Carrillo stems from a role he had with a group of Canadians, operating from White Rock and Calgary. The SEC claimed that the group ran boiler rooms that improperly touted a pair of pink sheets companies, Pacific Blue Energy Corp. and Tradeshow Marketing Ltd. Both stocks went to well over $1 before falling under a penny.
The regulator said that Mr. Carrillo and another lawyer, Wade Huettel, provided considerable assistance to the scheme. Under the guise of providing legal services, they drafted false and misleading opinion letters that allowed others to sell millions of shares, the SEC claimed. Those others made $11-million in gains, according to the SEC. Mr. Carrillo and Mr. Huettel also designed a share structure that concealed the vast number of shares that the others held, the SEC said.
Mr. Carrillo previously denied that he did anything wrong, saying he was merely a lawyer performing "transactional work." In a motion to dismiss filed July 22, 2013, he claimed that he sold no shares and received none of the gains from share sales. He said his work amounted to the standard, transactional work that lawyers perform every day.
He also contended that the scheme the SEC complained of was the work of others. Those others were alleged to have masterminded the pump-and-dumps and realized the profits, he claimed. He called the case against him a "radical effort to demonize counsel."
It is not clear what effect, if any, the restraining order and ban would have on Mr. Carrillo's ability to practise law. The California Bar still lists him as an active member with no disciplinary actions. It is possible the SEC could seek to bar him from practising securities law, but the regulator has not yet taken any such measure.
Details of the case are contained in a civil complaint that the SEC filed on March 15, 2013, in the Southern District of New York. The SEC cited a group of men, mostly Canadian, for a scheme that ran from 2007 to 2011. The Canadian defendants were John Kirk, 40, of Surrey; Benjamin Kirk, 34, of Calgary; Dylan Boyle, 34, of Calgary; and James Hinton, 42, of White Rock.
The SEC claimed that the men ran boiler rooms in Calgary and Surrey that touted Pacific Blue and Tradeshow Marketing, mostly in 2010. Employees called between 100 and 200 potential investors daily to tout the stocks, the SEC claimed. According to the complaint, callers provided investors unrealistic information, telling them that Pacific Blue Energy would have $33-million in annual earnings, among other things. The employee training, as described by the SEC, included instructions to watch the movie "Boiler Room" to learn how to promote stocks.
At the same time the men arranged for spam e-mails to tout the stocks, the complaint stated. The e-mails, as described by the SEC, contained unreasonable price targets, in one instance saying Tradeshow could go to over $30 when it was at 70 cents. Meanwhile the Kirks, Mr. Boyle and Mr. Hinton were selling shares of the companies, realizing $11-million in gains, according to the complaint. (During the scheme Pacific Blue Energy went to a $1.36 high, and was last at 0.1 cent. Tradeshow Marketing went to $1.62, and was last at 0.001 cent.)
The SEC is seeking penny stock bans, disgorgement of ill-gotten gains and appropriate fines. In filing the case, the SEC acknowledged the assistance of the B.C. Securities Commission.
Most of the defendants have settled the case out of court, accepting bans and fines. John Kirk agreed to a permanent penny stock ban and a permanent officer and director ban. He also agreed to disgorge profits in an amount that the judge still must determine. He did not admit to any wrongdoing. Mr. Boyle settled on identical terms. Also settling out of court was Mr. Hinton. His settlement has not yet been approved by the SEC, so the details are not yet available.
Benjamin Kirk is still fighting the case. He denies any wrongdoing, and previously called the allegations against him "sparse and vague." For Benjamin Kirk, the SEC's case is only one of his legal problems. In October, 2009, he was criminally charged in Philadelphia for an unrelated broker bribery scheme. He did not appear at his arraignment, and a warrant for his arrest is outstanding.
09/08/2015 253 Letter Provide Expert Notice and Discovery as to Gary Kershner, Songkram Roy Sahachaisere (Attachments: # 1 Appendix A, # 2 Appendix B, # 3 Appendix C, # 4 Appendix D, # 5 Appendix E, # 6 Appendix F, # 7 Appendix G) (Ott, Christopher) (Entered: 09/08/2015)
1:13-cr-00452-ENV USA v. Winick et al 1:13-cr-00452-ENV-1 Sandy Winick 1:13-cr-00452-ENV-2 Gregory Curry 1:13-cr-00452-ENV-3 Kolt Curry 1:13-cr-00452-ENV-4 Gregory Ellis 1:13-cr-00452-ENV-5 Gary Kershner 1:13-cr-00452-ENV-6 Joseph Manfredonia 1:13-cr-00452-ENV-7 Cort Poyner 1:13-cr-00452-ENV-8 Songkram Roy Sahachaisere 1:13-cr-00452-ENV-9 William Seals
U.S. District Court Eastern District of New York (Brooklyn)
CRIMINAL DOCKET FOR CASE #: 1:13-cr-00452-ENV All Defendants Case title: USA v. Winick et al Date Filed: 07/31/2013 Assigned to: Judge Eric N. Vitaliano
Defendant (1) Sandy Winick also known as Jerry Sarrano also known as John Peter Smith also known as Abdiel Vergara also known as Robin Cheer also known as Glen Forman also known as Kyle Bendford also known as Stephen Thompson represented by Richard H. Rosenberg Richard H. Rosenberg 217 Broadway Suite 707 New York, NY 10007 212-586-3838 Fax: 212-962-5037 Email: richrosenberg@msn.com LEAD ATTORNEY ATTORNEY TO BE NOTICED Designation: CJA Appointment
Pending Counts Disposition CONSPIRACY TO COMMIT SECURITIES FRAUD - The Penny Stock Scheme (1) CONSPIRACY TO COMMIT SECURITIES FUND - The Penny Stock Scheme (1s) Conspiracy to Commit Securities Fraud - the Penny Stock Scheme (1ss) CONSPIRACY TO COMMIT WIRE FRAUD - The Penny Stock Scheme (2) ATTEMPT AND CONSPIRACY TO COMMIT MAIL FRAUD (2s) Conspiracy to Commit Wire Fraud - the Penny Stock Scheme (2ss) CONSPIRACY TO COMMIT WIRE FRAUD - The Advance Fee Scheme (3) CONSPIRACY TO COMMIT WIRE FRAUD - The Advance Fee Scheme (3s) Conspiracy to Commit Wire Fraud - the Advance Fee Scheme (3ss) WIRE FRAUD - The Penny Stock Scheme (4-13) WIRE FRAUD - The Penny Stock Scheme (4s-13s) Wire Fraud - the Penny Stock Scheme (4ss-13ss) WIRE FRAUD - The Advance Free Scheme (14-18) WIRE FRAUD - The Advance Fee Scheme (14s-18s) Wire Fraud - the Advance Fee Scheme (14ss-18ss) SECURITIES FRAUD- RSGR (19s) Securities Fraud - RSGR (19ss) SECURITIES FRAUD - FOYJ (20) SECURITIES FRAUD - FOYJ (20s) Securities Fraud - FOYJ (20ss) SECURITIES FRAUD - TMHO (21) SECURITIES FRAUD - TMHO (21s) Securities Fraud - TMHO/FDHC (21ss) SECURITIES FRAUD - WGIH (22) SECURITIES FRAUD - WGIH (22s) Securities Fraud - WGIH (22ss) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Trevor Duncan" (23) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Trevor Duncan" (23s) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Daniel Summers" (24) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Daniel Summers" (24s) False Impersonation of an Officer and Employee of the United States - Trevor Duncan (26ss) False Impersonation of an Officer and Employee of the United States - Daniel Summers (27ss)
Highest Offense Level (Opening) Felony
Terminated Counts Disposition None
Highest Offense Level (Terminated) None
Complaints Disposition None Assigned to: Judge Eric N. Vitaliano
Defendant (2) Gregory Curry represented by Charles Samuel Hochbaum Charles S. Hochbaum, P.C. 16 Court Street, Suite 1800 Brooklyn, NY 11241 (718) 855-4800 Fax: (718) 422-4877 Email: crimdefend@aol.com LEAD ATTORNEY ATTORNEY TO BE NOTICED Designation: CJA Appointment
Pending Counts Disposition CONSPIRACY TO COMMIT WIRE FRAUD - The Advance Fee Scheme (3) CONSPIRACY TO COMMIT WIRE FRAUD - The Advance Fee Scheme (3s) WIRE FRAUD - The Advance Free Scheme (14-18) WIRE FRAUD - The Advance Fee Scheme (14s-18s) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Trevor Duncan" (23) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Trevor Duncan" (23s) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Daniel Summers" (24) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Daniel Summers" (24s)
Highest Offense Level (Opening) Felony
Terminated Counts Disposition None
Highest Offense Level (Terminated) None
Complaints Disposition None Assigned to: Judge Eric N. Vitaliano
Defendant (3) Kolt Curry also known as Michael East represented by Alan Baum The Criminal Defense Group 4181 Sunswept Drive 100 Studio City, CA 91604 (818)487-7400 Fax: (818)487-7414 Email: abaum@cdgemail.com LEAD ATTORNEY ATTORNEY TO BE NOTICED Designation: Retained
Ashli S. McKeivier The Criminal Defense Group 4181 Sunswept Drive 100 Studio City, CA 91604 (818)487-7400 Fax: (818)487-7414 Email: summer@cdgemail.com LEAD ATTORNEY ATTORNEY TO BE NOTICED Designation: Retained
Mildred M. Whalen Federal Defenders of New York, Inc. One Pierrepont Plaza, 16th Floor Brooklyn, NY 11201-4859 (718) 330-1200 Fax: 718-855-0760 Email: mildred_whalen@fd.org TERMINATED: 09/19/2013 LEAD ATTORNEY ATTORNEY TO BE NOTICED Designation: Public Defender or Community Defender Appointment
Pending Counts Disposition CONSPIRACY TO COMMIT WIRE FRAUD - The Advance Fee Scheme (3) CONSPIRACY TO COMMIT WIRE FRAUD - The Advance Fee Scheme (3s) WIRE FRAUD - The Advance Free Scheme (14-18) WIRE FRAUD - The Advance Fee Scheme (14s-18s) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Trevor Duncan" (23) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Trevor Duncan" (23s) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Daniel Summers" (24) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Daniel Summers" (24s)
Highest Offense Level (Opening) Felony
Terminated Counts Disposition None
Highest Offense Level (Terminated) None
Complaints Disposition None Assigned to: Judge Eric N. Vitaliano
Defendant (4) Gregory Ellis represented by Jonathan Marks Jonathan Marks, P.C. 535 5th Avenue 35th floor New York, NY 10017 212-883-0288 Fax: 347-823-8947 Email: jonmarkspc@gmail.com LEAD ATTORNEY ATTORNEY TO BE NOTICED Designation: CJA Appointment
Pending Counts Disposition CONSPIRACY TO COMMIT WIRE FRAUD - The Advance Fee Scheme (3) CONSPIRACY TO COMMIT WIRE FRAUD - The Advance Fee Scheme (3s) WIRE FRAUD - The Advance Free Scheme (14-18) WIRE FRAUD - The Advance Fee Scheme (14s-18s) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Trevor Duncan" (23) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Trevor Duncan" (23s) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Daniel Summers" (24) FALSE IMPERSONATION OF AN OFFICER AND EMPLOYEE OF THE UNITED STATES - "Daniel Summers" (24s)
Highest Offense Level (Opening) Felony
Terminated Counts Disposition None
Highest Offense Level (Terminated) None
Complaints Disposition None Assigned to: Judge Eric N. Vitaliano
Defendant (5) Gary Kershner represented by Lawrence A. Dubin 401 Broadway, Suite 306 New York, NY 10013 (917)543-0216 Fax: (212)966-0588 Email: dubinlarry@aol.com LEAD ATTORNEY ATTORNEY TO BE NOTICED Designation: CJA Appointment
Pending Counts Disposition CONSPIRACY TO COMMIT SECURITIES FRAUD - The Penny Stock Scheme (1) CONSPIRACY TO COMMIT SECURITIES FUND - The Penny Stock Scheme (1s) Conspiracy to Commit Securities Fraud - the Penny Stock Scheme (1ss) CONSPIRACY TO COMMIT WIRE FRAUD - The Penny Stock Scheme (2) ATTEMPT AND CONSPIRACY TO COMMIT MAIL FRAUD (2s) Conspiracy to Commit Wire Fraud - the Penny Stock Scheme (2ss) WIRE FRAUD - The Penny Stock Scheme (4-13) WIRE FRAUD - The Penny Stock Scheme (4s-13s) Wire Fraud - the Penny Stock Scheme (4ss-13ss) SECURITIES FRAUD - TMHO (21) SECURITIES FRAUD - TMHO (21s) Securities Fraud - TMHO/FDHC (21ss) SECURITIES FRAUD - WGIH (22) SECURITIES FRAUD - WGIH (22s) Securities Fraud - WGIH (22ss) False Statement to the FBI (24ss-25ss)
Highest Offense Level (Opening) Felony
Terminated Counts Disposition None
Highest Offense Level (Terminated) None
Complaints Disposition None Assigned to: Judge Eric N. Vitaliano
Defendant (6) Joseph Manfredonia also known as Maurizio also known as Richard also known as Panama Joe also known as Guillermo Mendoza represented by Lawrence F. Ruggiero Law Offices of Lawrence F. Ruggiero 167 East 61st Street Suite 17E New York, NY 10065 212-406-2910 Email: lawruggiero@mindspring.com LEAD ATTORNEY ATTORNEY TO BE NOTICED Designation: CJA Appointment
Pending Counts Disposition CONSPIRACY TO COMMIT SECURITIES FRAUD - The Penny Stock Scheme (1) CONSPIRACY TO COMMIT SECURITIES FUND - The Penny Stock Scheme (1s) CONSPIRACY TO COMMIT WIRE FRAUD - The Penny Stock Scheme (2) ATTEMPT AND CONSPIRACY TO COMMIT MAIL FRAUD (2s) WIRE FRAUD - The Penny Stock Scheme (4-13) WIRE FRAUD - The Penny Stock Scheme (4s-13s) SECURITIES FRAUD - RSGR (19) SECURITIES FRAUD- RSGR (19s) SECURITIES FRAUD - TMHO (21) SECURITIES FRAUD - TMHO (21s) SECURITIES FRAUD - WGIH (22) SECURITIES FRAUD - WGIH (22s)
Highest Offense Level (Opening) Felony
Terminated Counts Disposition None
Highest Offense Level (Terminated) None
Complaints Disposition None Assigned to: Judge Eric N. Vitaliano
Defendant (7) Cort Poyner represented by Joseph Anthony Gentile Frankie & Gentile, P.C. 1527 Franklin Avenue Suite 104 Mineola, NY 11501 516-742-6590 Fax: 516-742-6875 Email: Frangent1565@aol.com LEAD ATTORNEY ATTORNEY TO BE NOTICED Designation: CJA Appointment
Pending Counts Disposition CONSPIRACY TO COMMIT SECURITIES FRAUD - The Penny Stock Scheme (1) CONSPIRACY TO COMMIT SECURITIES FUND - The Penny Stock Scheme (1s) CONSPIRACY TO COMMIT WIRE FRAUD - The Penny Stock Scheme (2) ATTEMPT AND CONSPIRACY TO COMMIT MAIL FRAUD (2s) WIRE FRAUD - The Penny Stock Scheme (4-13) WIRE FRAUD - The Penny Stock Scheme (4s-13s) SECURITIES FRAUD - RSGR (19) SECURITIES FRAUD- RSGR (19s)
Highest Offense Level (Opening) Felony
Terminated Counts Disposition None
Highest Offense Level (Terminated) None
Complaints Disposition None Assigned to: Judge Eric N. Vitaliano
Defendant (8) Songkram Roy Sahachaisere represented by Joel Mark Stein Law Offices of Joel M. Stein, Esq. 30 Wall Street, 8th Floor New York, NY 10005 (212) 344-8008 Fax: 718-789-2582 Email: jmsteinesq@aol.com LEAD ATTORNEY ATTORNEY TO BE NOTICED Designation: CJA Appointment
Pending Counts Disposition CONSPIRACY TO COMMIT SECURITIES FRAUD - The Penny Stock Scheme (1) CONSPIRACY TO COMMIT SECURITIES FUND - The Penny Stock Scheme (1s) Conspiracy to Commit Securities Fraud - the Penny Stock Scheme (1ss) CONSPIRACY TO COMMIT WIRE FRAUD - The Penny Stock Scheme (2) ATTEMPT AND CONSPIRACY TO COMMIT MAIL FRAUD (2s) Conspiracy to Commit Wire Fraud - the Penny Stock Scheme (2ss) WIRE FRAUD - The Penny Stock Scheme (4-13) WIRE FRAUD - The Penny Stock Scheme (4s-13s) Wire Fraud - the Penny Stock Scheme (4ss-13ss) SECURITIES FRAUD - RSGR (19) SECURITIES FRAUD- RSGR (19s) Securities Fraud - RSGR (19ss) Obstruction of the SEC Investigation - Investsource (23ss)
Highest Offense Level (Opening) Felony
Terminated Counts Disposition None
Highest Offense Level (Terminated) None
Complaints Disposition None Assigned to: Judge Eric N. Vitaliano
Defendant (9) William Seals represented by Edward V. Sapone Law Offices of Edward V. Sapone 40 Fulton Street 23rd Flr. New York, NY 10038 212-349-9000 Email: edward@saponelaw.com LEAD ATTORNEY ATTORNEY TO BE NOTICED Designation: CJA Appointment
Pending Counts Disposition CONSPIRACY TO COMMIT SECURITIES FRAUD - The Penny Stock Scheme (1) CONSPIRACY TO COMMIT SECURITIES FUND - The Penny Stock Scheme (1s) CONSPIRACY TO COMMIT WIRE FRAUD - The Penny Stock Scheme (2) ATTEMPT AND CONSPIRACY TO COMMIT MAIL FRAUD (2s) WIRE FRAUD - The Penny Stock Scheme (4-13) WIRE FRAUD - The Penny Stock Scheme (4s-13s) SECURITIES FRAUD - RSGR (19) SECURITIES FRAUD- RSGR (19s)
Highest Offense Level (Opening) Felony
Terminated Counts Disposition None
Highest Offense Level (Terminated) None
Complaints Disposition None
Plaintiff USA represented by Christopher Allen Ott United States Attorneys Office 271 Cadman Plaza East Brooklyn, NY 11201 718-254-6154 Email: christopher.ott@usdoj.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED
Melanie Dyani Hendry United States Attorney's Office 271 Cadman Plaza East Brooklyn, NY 11201 718-254-6040 Fax: 718-254-7489 Email: melanie.hendry@usdoj.gov ATTORNEY TO BE NOTICED
Sylvia Shweder United States Attorneys Office 271 Cadman Plaza East Brooklyn, NY 11201 718-254-6092 Fax: 718-254-7499 Email: sylvia.shweder@usdoj.gov ATTORNEY TO BE NOTICED
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