Houston, Texas – July 2017
According to a press release from the US Attorney’s Office for the Southern District of Texas, a second superseding indictment has been issued by a federal grand jury naming additional individuals and companies related to the Chimera Energy Corp. pump and dump fraud. Losses due to the fraud may exceed $25 million.
The following individuals were named in September 15, 2016 indictment for a securities fraud scheme involving the stock of Chimera Energy Corp:
- Andrew Ian Farmer, 38 , Houston, TX
- Thomas Galen Massey, 46, Houston, TX
In a superseding indictment April 26,2017, a federal grand jury charged five additional individuals for their roles in the Chimera Energy fraud:
- Eddie Douglas Austin, Jr. , 66, Houston, TX
- Carolyn Price Austin, 62, Houston, TX
- Charles Earl Grob, Jr. 37, Houston, TX
- John David Brotherton, 57, League City, TX
- Scott Russell Sieck, 58, Winter Park, FL
On July 20, 2017, a grand jury returned a second superseding indictment against Farmer, Eddie and Carolyn Austin, Brotherton, Sieck and Grob for roles in a broader securities fraud conspiracy involving at least 12 other companies from 2011 to 2017.
The release indicates that Massey pleaded guilty to his role on April 18,2017, and is set for sentencing in June 2018.
Pump and Dump Scheme
In a pump and dump scheme, the fraudsters engage in fraudulent trading practices in a company’s stock by publishing false and misleading information about the company with the intention of inflating the price of the stock. Once the stock rises as a result of this fake information, the fraudsters dump their stock on the market to the investors who have been misled by the false information.
Victims who may have been advised by a registered stockbroker to invest in any of these companies may be able to recover damages through FINRA arbitration. Call to learn about 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.
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