Category Archives: Pump & Dump

BJ Gallison Sentenced on Pump & Dump Securities Fraud

March 18, 2016-San Diego

The San Diego Reader reports that B. J. Gallison was sentenced to 18 years in prison for wire fraud and money laundering in connection with an international pump and dump stock scam.

Gallison admitted artificially inflating (pumping) the shares of Warrior Girl Corp. and Everock, Inc. and then dumping the shares on the public market. To accomplish the scam Gallison created nominee accounts in the names of shell companies in order to conceal the true ownership of the securities.

Gallison was a majority owner of La Jolla Capital, later renamed Pacific Cortez Securities, a company that specialized in penny stocks.

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

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Former WFG Investments Broker With 42 Customer Complaints Pleads Guilty on Fraud Charges-San Antonio, TX

March 8, 2015- San Antonio, Texas

The Financial Industry Regulatory Authority (FINRA) reports that Matthew A. Bell , 47 of Boerne, TX, a broker who formerly worked for WFG Investments and Securities America, has been named in 42 customer disputes alleging damages in excess of $2,.5M. There are three disputes that have not yet been resolved, all of which allege unsuitable recommendations and misrepresentation and seek damages ranging from $5,000 to $75,000.

Bell was permitted to resign from WFG Investments in 6/2013 and is not currently registered with any broker dealer. Bell pleaded guilty to conspiracy to commit securities fraud and conspiracy to commit mail and wire fraud in a civil action brought by the Securities and Exchange Commission (SEC).

The SEC had charged Bell and a group of other conspirators with pumping up the price of penny stocks and dumping them on unsuspecting investors. The companies involved in the pump and dump were CodeSmart Holdings Inc., Cubed Inc., StarStream Entertainment Inc. and The Staffing Group Ltd. 

Bell found many of his victims through the Oak Hills Church.

If you had an account handled by Bell that suffered losses, contact us to learn how you may be entitled to damages from his former employer.

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

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

SEC Charges B.J. Gallison and 33 Others -From Costa Rica to California–in Penny Stock Scheme

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

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Texas Lawyer Found Guilty of Stock Fraud Involving ConnectAJet.Com

June 1, 2015

A federal jury in the Northern District of Texas found Martin Cantu, a lawyer from Round Rock, Texas, guilty of two criminal charges in connection with an alleged conspiracy to deceive potential investors about the business of Connect-a Jet, according to an FBI Press Release.

Cantu and co-defendant Jason Wynn were charged in a 2013 indictment alleging that they conspired to issue public statements and ads about Connect-a-Jet that contained sales and misleading statements designed to increase demand for the company’s stock. Cantu made over $500,000 in profit on the stock and Wynn made over $2.5 million profit.

According to the release, Wynn, a stock promoter from Lantana, Texas, pleaded guilty in April 2015, to a conspiracy charge and is awaiting sentencing.

Cantu faces 5 years on one of the counts and 20 years on the other.

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

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Montana Man Sentenced in Pump/Dump Penny Stock Scam

April 3, 2015

The FBI announced that Matthew Carley, of Bozeman, Montana, was sentenced to 24 months in prison for his role in a stock manipulation scheme involving Ashburn, Virginia, company Red Branch Technologies. In addition he was ordered to forfeit over $789,000 and to pay $2.3 million in restitution to the victims.

Carley and his cohorts gained control of Red Branch Technologies and manipulated the price of the stock in order to sell their low priced shares to the unsuspecting public in a classic ‘pump and dump’ scheme.

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

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Gary Williky Named in Securities Fraud Action- Colleyville, Texas

March 2, 2015-Colleyville, Texas

The U.S. Securities & Exchange Commission (SEC) filed a complaint seeking an injunction alleging that Gary S. Williky of Colleyville, Texas perpetrated an illegal market manipulation and insider trading scheme involving the stock of Imperial Petroleum, Inc., an Evansville, Indiana based public companyIn the complaint the SEC alleges that Williky is a recidivist market manipulator.

The SEC complaint seeks an injunction, disgorgement and civil penalties.

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

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Marc Bercoon & William Goldstein Arrested For Market Manipulation Complaint- Medcareers Group/ Find.com

January 28, 2015- Atlanta, GA

The FBI announced that Marc E. Bercoon, 54, of Dunwoody, and William A. Goldstein, 51, of Atlanta, have been indicted and arrested on federal charges that they manipulated the market for shares of Medcareers Group, Inc.  (MCGI) a publicly traded company and organized a second business which was a part of the fraud.

According to the U.S. Attorney’s office, they carried out  ‘pump and dump’ schemes from July 2009-September 2011 by issuing misleading press releases and sending out mass emails touting Medcareers Group.

The indictment also alleges that from May 2009-June 2010, Bercoon and Goldstein carried out a second fraud soliciting money which would purportedly be used to fund the development of an Internet search engine, ‘Find.com”. According to the FBI announcement they used the bulk of the $1.5 million raised for unrelated personal purposes.

If you invested in Medcareers Group or Find.com through a registered stockbroker or broker dealer, you may be entitled to damages. Call to discuss this with an experienced securities attorney.

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

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870