Replies to post #23505 on DD Support Board and Research Team

[scion]

United States Court of Appeals, Second Circuit. - 445 F.3d 105
Argued: September 9, 2005 Decided: April 10, 2006

445 F.3d 105: Securities and Exchange Commission, Plaintiff-appellee, v. Thomas Edward Cavanagh, U.S. Milestone, Frank Nicolois, Karen Cavanagh, Beverly Nicolois, Cromlix, Llc, and Thomas A. Hangtes, Defendants-appellants,electro-optical System Corp., George Chachas, Thomas R. Brooksbank, the Estate of William N. Levy, Deceased, by and Through His Executrix, Marlene Levy, Optimum Fund, Agira Trading, Customer Safety, S.l., Cambiares, S.l., Construcciones Solariegas, S.l., Cosimo Tacopino, Maier S. Lehman, James E. Franklin, Donald & Co. Securities Inc., Shbl Associates Europe Ltd., Joseph Falco, Martin Hodas, Bernd Stieghorst, Erin Martin, Ana P. Lopez, Tamar Lehman, Metropolitan Trade Finance Ltd., Tim Timlin, Carmillo Monastra, Eugene Stricker, Arthur De Acutis, Jean-pierre Neuhaus, Kenneth C. Kehoe, Antonio v. Borotto, Anthony S. Luttenberger, Shlomie Zarchy, Florida Pension Fund Inc., Inversoa Dactiler, S.l., Edward C. Kaufer, the Owners of Account No. 13601, and Baja Ltd., Defendants

http://law.justia.com/cases/federal/appellate-courts/F3/445/105/602695/

[scion]

Kaufmann, who controls nearly all of Axius’ stock, wanted to raise roughly $5 million by selling his shares to a network of corrupt brokers. The brokers would buy the stock over a period of months using their clients’ money, and promise to not to sell the stock for 12 months, the feds said.

In exchange, the brokers would get kickbacks of up to 28 percent of the total purchase price. Axius’ share owners would then benefit as other unsuspecting investors piled in, thus driving the stock up further.

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