Five Defendants Indicted for Pump-and-Dump Stock Fraud Scheme | USAO-SDCA
Assistant U. S. Attorneys Aaron P. Arnzen (619) 546-8384 and Andrew J. Galvin (619) 546-9721
News Release SUMMARY – February 17, 2022
SAN DIEGO – 5 men from California, Nevada and Florida are charged in an indictment unsealed these days with conspiring to manipulate the sector for the stock of a healthcare firm whose goods include things like COVID-19 diagnostic checks.
The defendants are accused of manipulating the current market for the stock of Global WholeHealth Associates Company (Ticker: GWHP), which marketed by itself as a corporation targeted on healthcare-related progress and solutions. The defendants consist of Brian Volmer of Carson City, Nevada Joshua Yafa of Boca Raton, Florida, and his brother, Jamie Yafa of Kissimmee, Florida Charles Strongo of San Clemente, California and Carl Marciniak of Minden, Nevada. All have been arrested or usually contacted by regulation enforcement today in their hometowns.
According to the indictment, the defendants’ crime included initiatives to operate a pump-and-dump scheme in World-wide WholeHealth Partners’ inventory. Their scheme bundled keeping handle around the company’s free of charge-trading shares by means of solution nominee accounts artificially inflating the stock’s price tag and investing volume by advertising and marketing the inventory by superior tension call rooms and penny stock newsletters engaging in manipulative inventory buying and selling and promoting the stock at inflated selling prices to unwitting buyers. The defendants collectively spoke on dozens of recorded phone calls about vital facets of their plan.
“Pump and dump techniques deteriorate the integrity of the securities marketplaces and wipe out Principal Street investors’ self confidence in their skill to invest on a level enjoying subject,” stated U.S. Legal professional Randy Grossman. “This scenario need to provide as a reminder that individuals who manipulate the United States securities marketplaces are becoming scrutinized by regulation enforcement and will be held accountable.” Grossman thanked the prosecution crew, the FBI and the Securities and Trade Commission for their exceptional work on this situation.
“These defendants engaged in a conspiracy to inflate inventory price ranges via bogus and deceptive info to enrich on their own and make a brief gain,” reported FBI Specific Agent in Cost Suzanne Turner. “The FBI is very pleased to work alongside our partners at the United States Securities and Exchange Fee to maintain the integrity of the stock industry and safeguard straightforward buyers.”
The Securities and Exchange Commission has also taken civil action from numerous of the defendants in this circumstance.
Scenario Selection 21cr1310-WQH
DEFENDANTS
Brian Volmer Age: 58 Carson Metropolis, NV
Joshua Yafa Age: 47 Boca Raton, FL
Jamie Yafa Age: 43 Kissemmee, FL
Charles Strongo Age: 58 San Clemente, CA
Carl Marciniak Age: 57 Minden, NV
SUMMARY OF Fees
Conspiracy – Title 18, U.S.C. § 371
Securities Fraud – Title 15, U.S.C. §§ 78j(b) and 78ff, and Title 17, C.F.R., § 240.10b-5
Maximum penalty: 20 a long time in prison and $5 million great
Companies
Federal Bureau of Investigation
United States Securities and Trade Fee
*The charges and allegations contained in an indictment or criticism are just accusations, and the defendants are thought of innocent until and until finally verified guilty
