Da Big Kahuna Charged With Securities Fraud -- Gidget and Moon Doggie on the run?
Da Big Kahuna Indicted For Securities Fraud
The Federal Criminal Case
A federal grand jury returned an indictment under seal on May 26, 2010, charging Blake Williams, 27, of Dallas, and Derek Lopez, 43, of Torrance, Calif., with one count of conspiracy to commit securities fraud and seven counts of securities fraud. Both men were arrested on May 27, 2010. Allegedly, from June 2006 through December 2008, Williams, Lopez and their co-conspirators engaged in a scheme to manipulate the price and volume of stocks traded in the over-the-counter market. Williams and Lopez allegedly traded stock in their own names as well as through TBeck Capital and other companies to keep the stock price artificially inflated. Lopez allegedly traded in his own name, as well as in the name "Da Big Kahuna," to disguise his trades. Williams allegedly traded in his own name and in the name of several companies to make it appear that there were multiple unrelated entities buying and selling the stock. According to the indictment, Williams allegedly received cash payments and Lopez received free-trading stock and cash payments in return for their assistance in manipulating the stock prices of companies in which TBeck Capital owned and controlled large positions of free-trading stock.
In a separate action, on May 27, 2010, The Securities and Exchange Commission (SEC) filed a complaint against Williams and Lopez, and numerous entities that they controlled, alleging that they committed securities fraud by manipulating the markets of numerous microcap stocks from 2006 to 2008. The SEC alleges that the defendants sold stock in unregistered offerings and that their subsequent manipulation led to artificially high prices and volume, which allowed the defendants and others to sell their holdings for substantial gains. The complaint also alleges that Williams acted as an unregistered broker-dealer when he solicited purchases of stock and traded on behalf of investors who bought stock from him.
READ BILL SINGER'S COMPREHENSIVE ANALYSIS OF THESE CASES AT:
Not Much in the Way of Progress: Pequot, Samberg and Martha Stewart
So tell me, if Stewart's trading took place in December 2001 and Pequot/Samberg's trading took place eight months earlier in April 2001 -- why was Stewart at trial by 2004 but Pequot/Samberg's case is first resolving in 2010? And given that the fact patterns seem quite similar, why didn't Stewart just get to write out a fat settlement check instead of going to jail? Ain't progress grand?
READ BILL SINGER'S HUFFINGTON POST ARTICLE AT: