Thomas Schroepfer a/k/a Thomas Schroepfer Baetsen, of Las Vegas, Nev., the president and CEO of SmokeFree Innotec, Inc., and Charles Fuentes, of Dana Point, Calif., a promoter of SmokeFree’s stock, paid kickbacks to an undercover FBI agent, posing as the business associate of a corrupt employee pension fund trustee, in exchange for the fund’s purchase of 400,000 shares of restricted SmokeFree stock. Schroepfer attempted to conceal the kickbacks through a consulting agreement with a phony company created to receive the kickbacks. In addition, SmokeFree issued shares of its stock to a cooperating witness for acting as a middleman in the scheme.