Category Archives: Pump & Dump

Cannabis Penny Stock Promoter James Farinella Named In SEC Fraud Suit

JUNE 2017

The U S Securities and Exchange Commission charged James M. Farinella ,  Integrated Capital Partners (ICP) , Anthony Amado, Equities Awareness Group LLC (EAG) and Carlos Palomino with securities fraud involving the manipulation and artificial inflation of the share price of microcap company Pazoo, Inc., a cannabis penny stock (PZOO).

The SEC alleges that Farinella and ICP controlled the entire public float of stock in Pazoo and that by engaging in matched trading they created the appearance of an active market for Pazoo which boosted its market price. According to the SEC Farinella dumped his Pazoo shares after the price rose, netting him a million dollar gain.

In a parallel action the US Attorney for the District of New Jersey announced criminal charges against Farinella.

Link to SEC Complaint. 

If you have losses on penny stocks recommended to you by your broker, contact us to discuss your legal 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

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

Matthew Bell-Former WFG Investments Broker- Discloses 46 Customer Complaints-Pleads Guilty on Fraud Charges-San Antonio, TX

UPDATE MAY 2017

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 46 customer disputes alleging damages in excess of $2.5M. There are two 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