The U.S. Securities and Exchange Commission filed charges against two Canadians for fraudulent stock sales scheme. The federal lawsuit filed by government lawyers in New York alleges pump-and-dump scheme against the two suspected con men.
New York government lawyers with the U.S. Securities and Exchange Commission file fraud charges against two Canadian men.
New York, NY–Government lawyers with the U.S. Securities and Exchange Commission (SEC) http://www.sec.gov filed a lawsuit in New York federal court against two suspected Canadian swindlers. The suit alleges the two named defendants, Toronto’s Jay Budd and Surrey’s John Briner, sold millions of dollars worth of profitless stock in an elaborate securities fraud scheme, as reported by Reuters. The lawsuit filed Monday, August 31, 2009, SEC v. Golden Apple Oil and Gas Inc, U.S. District Court, Southern District of New York (Manhattan), No. 09-7580; asserts the two men released false and misleading press releases to sell stock in Golden Apple Oil & Gas Inc from the fall of 2004 through May 2006.
Apparently, Briner the legal services provider for Golden Apple orchestrated an initial 5 million share offering to unsuspecting investors, and Golden Apple’s Chief Executive Officer, Budd, held several subsequent stock offerings to the public. The false and misleading press releases and consumer marketing tactics arranged by both men led to selling inflated stock prices, generating over $3 million in illegal sales. Budd formed Scottsdale, Arizona based company Ethos Investments Inc., to facilitate their fraud scheme. Government attorneys demand the two Canadian swindlers pay civil fines, relinquish their illegal profits, and other remedies.
New York government attorneys alert by legal news reporter Heather L. Ryan.