cash4
4 years ago
Former Boca Raton Securities Attorney Receives 28 Months for Role in Pump-And-Dump Scheme
https://www.ecclestonlaw.com/eccleston-law-blog/former-boca-raton-securities-attorney-receives-28-months-for-role-in-pumpanddump-scheme
Posted on May 13th, 2019 at 5:02 PM
Former Boca Raton Securities Attorney Receives 28 Months for Role in Pump-And-Dump Scheme
From the Desk of Jim Eccleston at Eccleston Law LLC:
A federal judge has sentenced former Boca Raton, Florida, securities attorney Mark Fisher to more than two years in prison for his role in a $1 million pump-and-dump scheme involving shares of a beauty supply company, Valentine Beauty Inc. Fisher also was ordered to forfeit $8.4 million in profits he received from the pump-and-dump scheme.
According to federal prosecutors, Fisher, who had previously been licensed to practice law in the state of Florida and New York and stock promoter Joseph F. Capuozzo were recruited by Eddy Ubaldo Marin, who owned a controlling interest in the company. Moreover, Marin requested that Fisher and Capuozzo mask his controlling interest in shares of Valentine Beauty, promote the stock and then sell it at an inflated price.
From the end of 2013 until April 2016, the three businessmen along with an associate transferred millions of Valentine Beauty shares into brokerage accounts under fake entity names operated by Marin and Capuozzo. Moreover, in order to promote the Valentine Beauty stock, Fisher and Capuozzo regularly issued press releases and newsletters and then sold the shares to the public once the stock price had gone high enough.
In April of 2016, after an investigation, the SEC suspended trading in Valentine Beauty’s shares and criminal charges followed, thereafter.
The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities Fraud, Compliance Protection, Breach of Fiduciary Duty, FINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.
cash4
4 years ago
Former Boca Raton attorney permanently disbarred following securities fraud guilty plea
https://flarecord.com/stories/511871651-former-boca-raton-attorney-permanently-disbarred-following-securities-fraud-guilty-plea
By Karen Kidd | Mar 4, 2019
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Florida Supreme Court chamber in Tallahassee | Nagel Photography / Shutterstock.com
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TALLAHASSEE — Former Boca Raton attorney Mark Fisher has been voluntarily and permanently disbarred following a Feb. 7 Florida Supreme Court order after his guilty plea late last year to securities fraud, according to a recent announcement by the Florida Bar.
The state Supreme Court issued its two-page order of disciplinary revocation, tantamount to disbarment with leave to seek readmission after five years, after accepting Fisher's petition for disciplinary revocation.
The disbarment was effective immediately.
The Supreme Court also ordered Fisher to pay $1,250 in costs.
The state bar announced the discipline and the Supreme Court's order on Feb. 28.
Florida court orders are not final until time to file a rehearing motion expires. Filing such a motion does not alter the effective date of Fisher's suspension.
Fisher was admitted to the bar in Florida on Feb. 25, 2000, according to his profile at the state bar website. No prior discipline before the state bar is listed on Fisher's state bar profile.
In October, Fisher, then 53, and stock promoter Joseph F. Capuozzo, of Davie, were charged in connection with a $1 million pump-and-dump securities fraud scheme that involved shares of Sunrise-based beauty and health products firm Valentine Beauty, Inc., according to a U.S. Department of Justice press release. Fisher and Capuozzo were allegedly part of a larger group that distributed fake press releases about Valentine Beauty with the intent to imply the business was in better shape than it was.
When the stock price of Valentine Beauty subsequently rose, Fisher and Capuozzo sold their shares for $1 million, according to the press release.
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In December, Fisher and Capuozzo each pleaded guilty in federal court to single counts of conspiracy to commit securities fraud. The two are scheduled to be sentenced March 25. They could each face up five years in prison and a fine up to $250,000 or double the gross proceeds of their offenses, according to the Justice Department press release.
cash4
4 years ago
Former South Florida Attorney and Stock Promoter Plead Guilty to Conspiracy to Commit Securities Fraud in Relation to Pump and Dump Stock Manipulation Scheme
https://www.justice.gov/usao-sdfl/pr/former-south-florida-attorney-and-stock-promoter-plead-guilty-conspiracy-commit
A former South Florida attorney and a stock promoter pled guilty today in connection with a $1 million pump and dump securities fraud scheme involving the shares of Valentine Beauty, Inc. (“VLBI”).
Ariana Fajardo Orshan, United States Attorney, Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office made the announcement.
Mark E. Fisher, 53, of Boca Raton, Florida, and Joseph F. Capuozzo, 57, of Davie, Florida, pled guilty before U.S. District Judge Kathleen M. Williams, in Miami, to one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371, in Case No. 18-CR-20823. Judge Williams is scheduled to sentence Capuozzo on February 21, 2019 and Fisher on March 25, 2019. Each defendant faces a maximum statutory sentence of up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense.
Previously, Eddy Ubaldo Marin, 56, of Ft. Lauderdale, Florida, and Shane R. Spierdowis, 27, formerly of Boca Raton, were charged with securities fraud offenses in connection with the same VLBI scheme. Marin pled guilty and was sentenced on September 5, 2018, to 210 months in prison by U.S. District Judge Darrin P. Gayles (Case No. 18-CR-20354-DPG). Spierdowis also pled guilty and was sentenced by U.S. District Judge Ursala Ungaro to 5 years on probation. (Case No. 18-CR-20355-UU).
According to court documents, VLBI was a beauty products supply company with operations in Sunrise, Florida, that marketed its products on television infomercials and elsewhere. Shares of VLBI stock were publicly traded and quoted over the counter on OTC Link. In approximately November 2013, Marin and other accomplices arranged to secretly obtain a controlling interest in VLBI stock by issuing shares to certain third parties, including Green Tree Capital, Inc., a company controlled by Marin and Capuozzo, based in Ft. Lauderdale, Florida.
Fisher, formerly a practicing lawyer licensed to practice in Florida and New York, was a securities lawyer based in Boca Raton who allegedly became involved with the manipulation of VLBI shares at the invitation of Marin. Fisher allegedly executed various false and fraudulent documents to facilitate the scheme, including certain legal opinion letters that falsely indicated that shares controlled by Marin and other conspirators, were not in fact owned or controlled by “affiliates” of the companies. Such letters allowed shares of VLBI to be falsely classified as “free trading” and thus sold to the public, when in reality that were restricted. In March and April, 2014, Marin, Fisher, Capuozzo, Spierdowis, and other conspirators arranged to transfer a substantial number of shares into brokerage accounts in the name of fictitious entities, but in reality controlled by the conspirators. In addition, according to court documents, Fisher, Capuozzo and other conspirators knew that Marin was a convicted felon and attempted to conceal his role in the scheme by keeping his name off of corporate documents. To facilitate the concealment of Marin’s role, Capuozzo became the listed owner of an entity that held Marin’s VLBI shares and traded the shares at the direction of Marin. Capuozzo also served as the nominee Chief Executive Officer of VLBI, while acting at the direction of Marin and the conspirators.
Thereafter, beginning in approximately May 2014 and continuing through in or around September 2014, Marin, Fisher, Capuozzo, Spierdowis, and others arranged for VLBI to issue rosy press releases, while also using internet marketing and penny stock newsletters to tout VLBI stock. These efforts were intended to artificially increase the trading volume and price of VLBI shares, so that Marin, Fisher, Capuozzo, Spierdowis and their co-conspirators could secretly sell shares at a profit. During the conspiracy period, the conspirators sold approximately $1 million worth of VLBI shares to the investing public.
In approximately June 2014, Marin began a term of federal imprisonment due to a different federal offense, and was ultimately incarcerated at FCI Miami. While Marin was at FCI Miami, Fisher, Capuozzo, Spierdowis, and others continued the stock manipulation scheme, while keeping a larger portion of the trading profits for themselves. The conspirators continued to sell shares of VLBI, while continuing the same pattern of issuing press releases and engaging in coordinated sales of shares, until approximately April 26, 2016, when trading in VLBI shares was suspended by the U.S. Securities and Exchange Commission (SEC).
Previously, the SEC filed parallel civil enforcement actions against Fisher, Capuozzo, Marin and Spierdowis.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office. She also thanked the SEC’s Miami Regional Office for their assistance. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy, and Assistant U.S. Attorney Alison Lehr is handling asset forfeiture related to the matter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
scion
6 years ago
South Florida Stock Promoters Charged with Securities Fraud in Relation to Pump and Dump Stock Manipulation Scheme
Department of Justice
U.S. Attorney’s Office
Southern District of Florida
FOR IMMEDIATE RELEASE
Wednesday, May 2, 2018
South Florida Stock Promoters Charged with Securities Fraud in Relation to Pump and Dump Stock Manipulation Scheme
Two South Florida stock promoters have been charged in connection with a $1 million pump and dump securities fraud scheme involving the shares of Valentine Beauty, Inc. (“VLBI”).
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Eddy Ubaldo Marin, 56, of Ft. Lauderdale, Florida, was charged by a criminal information with one count of securities fraud, in violation of Title 15, United States Code, Sections 78(j)(b) and 78ff(a), and Title 17, Code of Federal Regulations, Section 240.10b-5 in Case No. 18-CR-20354. Marin faces a maximum statutory sentence of up to 20 years in prison and a fine up to $5 million. The case is assigned to U.S. District Judge Darrin P. Gayles in Miami. Shane R. Spierdowis, 27, formerly of Boca Raton, Florida, was charged by separate criminal information with one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371 in Case No. 18-CR-20355. Spierdowis faces a maximum statutory sentence of up to 5 years in prison and a fine up to $250,000 or double the gross proceeds of the offense. The case is assigned to U.S. District Judge Ursula M. Ungaro in Miami.
According to the court docket, including allegations made in the charging documents, VLBI was a beauty supply company with operations in Sunrise, Florida, that marketed its products on television infomercials and elsewhere. Shares of VLBI stock were publicly traded and quoted over the counter on OTC Link. In approximately November 2013, Marin and certain other accomplices arranged to secretly obtain a controlling interest in VLBI stock by issuing shares to certain third parties, including Green Tree Capital, Inc., a company controlled by Marin, based in Ft. Lauderdale, Florida. In March and April, 2014, Marin arranged to transfer a substantial number of shares into accounts controlled by Spierdowis and other co-conspirators. Marin was a convicted felon and, according to court documents, attempted to conceal his role in the scheme by keeping his name off of corporate documents. Marin also arranged to obtain false and fraudulent legal opinion letters so that the shares he controlled could be falsely classified as “free trading” rather than restricted.
Thereafter, beginning in approximately May 2014 and continuing through in or around September 2014, Marin, Spierdowis and others allegedly arranged for VLBI to issue press releases, while also using internet marketing and penny stock newsletters to tout VLBI stock. Spierdowis would then use one company to trade VLBI shares, while using a separate company to conduct internet marketing activities, to avoid association with the pump and dump stock manipulation and cause the issuance of marketing newsletters and other email marketing. These efforts were intended to artificially increase the trading volume and price of VLBI shares, so that Marin, Spierdowis and their co-conspirators could sell shares at a profit. During the conspiracy period, the conspirators sold approximately $1 million worth of VLBI shares to the investing public.
In approximately June 2014, Marin began a term of federal imprisonment due to a different federal offense, and was ultimately incarcerated at FCI Miami. While at FCI Miami, Marin was allegedly visited by Spierdowis on various occasions and during these visits the defendants coordinated the sale of VLBI shares and discussed activites related to other stocks.
According to court documents, in or around April 2015, after Marin was released from federal custody he, along with Spierdowis and their co-conspirators, planned to conduct a reverse merger of VLBI into another entity, change the name, and retain secret control of the company.
The conspirators continued to sell shares of VLBI until approximately April 26, 2016, when trading in VLBI shares was suspended by the U.S. Securities and Exchange Commission (SEC).
Today, a parallel civil enforcement action was filed by the SEC in the Southern District of Florida against Marin and Spierdowis in connection with the VLBI pump and dump manipulation scheme.
A criminal information is a charging instrument containing allegations. Every defendant is presumed innocent unless and until found guilty in a court of law.
Mr. Greenberg commended the investigative efforts of the FBI in this matter. Mr. Greenberg also thanked the SEC’s Miami Regional Office for their assistance. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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Updated May 2, 2018
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https://www.justice.gov/usao-sdfl/pr/south-florida-stock-promoters-charged-securities-fraud-relation-pump-and-dump-stock
scion
6 years ago
Two South Florida Men Barred From Penny Stock Offerings For Engaging In a Microcap Pump-and-Dump Scheme
Litigation Release No. 24127 / May 2, 2018
Securities and Exchange Commission v. Eddy U. Marin and Shane R. Spierdowis, No. 18-cv-21744 (S.D. Fla. filed May 2, 2018)
Two South Florida men have agreed to lifetime bars from the penny stock business to settle charges that they orchestrated a fraudulent pump-and-dump scheme involving shares of Valentine Beauty Inc., a Sunrise, Florida, company that purported to be in the beauty products business.
The SEC alleges that Eddy Marin of Davie, Florida, secretly gained control of the publicly traded shares of Valentine Beauty and then issued the stock to himself, stock promoter Shane Spierdowis, of Boca Raton, Florida, and others. Marin, who is a convicted felon, and Spierdowis orchestrated a marketing campaign touting Valentine's purported operations and Spierdowis paid other promoters to tout the company. Once the promotional campaign increased the liquidity of Valentine's stock, Marin and Spierdowis sold a significant portion of their shares, collectively reaping more than $250,000 in stock sale proceeds.
In a parallel action, the U.S. Attorney's Office for the Southern District of Florida today announced criminal charges against Marin and Spierdowis.
The SEC's complaint, filed in federal court in Miami, charges Marin and Spierdowis with violating Sections 5(a) and (c) and 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder. The complaint also charges Marin with violating Section 17(a)(2) of the Securities Act. Marin and Spierdowis agreed to settle the SEC's charges and be barred from the penny stock industry. The settlement with the SEC, which is subject to court approval, also permanently enjoins Marin and Spierdowis from violating the charged provisions of the federal securities laws and provides that the court will decide the amounts of disgorgement, interest, and civil penalties at a later date.
The SEC's investigation was conducted by the Enforcement Division's Microcap Fraud Task Force and Lina M. Fernandez in the Miami office, and supervised by Elisha L. Frank. Wilfredo Fernandez is leading the SEC's litigation. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of Florida and the Federal Bureau of Investigation.
https://www.sec.gov/litigation/litreleases/2018/lr24127.htm
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