July 14, 2015-Washington DC
The Securities and Exchange Commission (SEC) charged 15 individuals and 19 companies in a penny stock pump and dump scheme. The SEC complaint alleges that Moneyline Brokers of Costa Rica and its founder Bailey (B.J.) Gallison II unlawfully acted as a broker-dealer allowing U.S. based customers to operate the pump and dump scheme that artificially inflated the price of the stock which was then sold at a profit.
The SEC alleges that Moneyline accepted transfers of microcap (penny) stocks from the U.S. customers and reissued the shares in Moneyline’s name to conceal the true ownership of the shares.
Other defendants include:
- Carl H. Kruse, Sr. and Carl H. Kruse, Jr. of Miami who are charged with manipulating trading in Warrior Girl, a company that allegedly was in the hydroelectric business, then changed to extracting oil from tar sands and then to online education.
- Everock, Inc. a Canadian mining company that relocated to Nevada to sell sandwich spread after reorganizing with Nature’s Peak
- Sandias Azucaradas CR and Vanilla Sky, S.A. of Costa Rica
- Bastille Advisors, Club Consultants, and Jurojin of Nevada
- Roger Coleman, Las Vegas
- Ann M. Hiskey, Costa Rica
- Robin M. Rushing and David K. Rushing of Spokane
- Michael J. Randles, Costa Rica
- Allan M. Migdall, Fort Lauderdale
- Robert S. Oppenheimer, Belvedere Tiburon, CA
- Core Business One
- Fry Canyon Corp.
- L.F. Technology Group
- Starburst Innovations
- Tachion Projects
- B.H.I. Group and UDF Consulting of New York
- Charles S. Moeller, Sea Cliff, NJ
- Mark S. Dresner, Dix Hills, NJ
- Frank J. Zangara, Locust Valley, New York
The SEC seeks return of the ill gotten gains from the defendants as well as penalties and seeks to bar the defendants from the penny stock business.
If your broker made a recommendation for you to invest in any of these penny stocks you may be able to recover damages. Call to discuss your options.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
Nationwide Representation
TollFree: 877-224-3199
Florida-561 391 1900
Texas-512-329-2870