The SEC’s complaint contends that Beaufort and Kyriacou became involved in a pump-and-dump scam with a man that they didn’t know was working for the FBI. With him, they purportedly spoke about using promotions to raise stock prices, engaging in matched trades to affect the stock price, and selling the shares to make a profit.
The SEC filed another complaint contending that in recorded phone calls, HD View CEO Dennis Mancino and CEO of WT Consulting Group LLC William T. Hirschy consented to manipulate the company’s stock by utilizing the undercover agent’s broker network to create a “fraudulent” demand. The two of them were supposed to “manipulate HD View stock” so that its price would go up prior to having the brokers in the agent’s network liquidate their positions. In return, there would be a kickback paid from the money made from trading. The regulator has also filed civil charges against Mancino, Hirschy, and the entities TJM Investments Inc., WT Consulting Group, and DJK Investments 10 Inc.
Meantime, the US Justice Department has brought criminal charges against Beaufort, Kyriacou, Mancino, and others for their alleged involvement in an over $50M stock scam. Prosecutors contend that the broker-dealer, Kyriacou and Vinesh Canay, who was another Beaufort investment manager, hid their ownership in US stocks that they were manipulating. Eight defendants are accused of scheming to launder the money made by the scam that even involved a painting by Pablo Picasso. Loyal Bank Ltd., and offshore bank, is one of the defendants, as are three corporate entities and three other individuals, including London art gallery owner Mathew Green.
U.S. charges 10 in alleged global stock fraud involving a Picasso, Reuters, March 2, 2018
More Blog Posts from SSEK Law Firm:
As LJM Preservation and Growth Fund Declines in Value and Announces Shut Down, Investors Suffer Losses, Stockbroker Fraud Blog, March 1, 2018
BitConnect Shutters Its Lending and Exchange Operation, Leaving Texas Investors With No Place to Trade Their BCC Currency, Stockbroker Fraud Blog, January 17, 2018
Royal Bank of Scotland Settles Mortgage-Backed Securities Fraud Case Brought by Pension Funds for $125M, Institutional Investor Securities Blog, December 29, 2017