Four of eight people charged in a penny stock "pump and dump" scheme that defrauded $290 million from thousands of investors were arraigned on Thursday following a two-year investigation.
Anthony Thompson, 38, of Bethesda, Maryland, Jay Fung, 40, of Delray Beach, Florida, Hanna Schmieder, 39, of Los Angeles and Kenneth Oxsalida, 59, of Sebring, Florida, all pleaded not guilty before Judge Roger Hayes in in state Supreme Court in Manhattan.
Thompson, Fung and another stock promoter sent out email blasts from websites they controlled promoting stocks to potential investors while working with others in the scheme as they allegedly took control of public shell companies, merged private companies into them, then transferred millions of shares to themselves and drove up the price of the stocks, prosecutors said.
Once they controlled the shares, prosecutors said the defendants then sent out press releases promoting companies such as Xynergy Holdings Inc. and Mass Hysteria Entertainment Co. but cashed their shares before the stocks plummeted.
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1 comment:
Happens all the time with penny stocks,no income or earnings but big valuations sort of like tech stocks in the 90s.
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