A dual U.K.-Canadian citizen who allegedly masterminded a global pump-and-dump scheme has pled guilty in a U.S. court.<\/p>\n
U.S. authorities alleged that Ronald Bauer, a dual citizen who lived in London, U.K., orchestrated a series of pump-and-dumps that involved gaining secret control of most of the free trading shares of certain companies, using a series of nominees created by a Swiss corporation called Blacklight S.A.<\/p>\n
Those nominees, which were secretly controlled by Bauer and his co-conspirators, then engaged in wash trading the companies’ shares. They touted the companies in promotional campaigns, driving up the issuers’ share prices before dumping their shares on unsuspecting investors, U.S. authorities alleged.<\/p>\n
Bauer (aka Patek) pled guilty to a charge of conspiracy to commit securities fraud in a U.S. district court. He is scheduled to be sentenced on May 20. As part of his guilty plea, a US$4.3-million judgment was also entered against Bauer.<\/p>\n
“As he admitted in connection with his guilty plea, Bauer and his co-conspirators participated in a conspiracy to commit securities fraud with respect to seven issuers,” the U.S. attorney’s office noted.<\/p>\n
The list of issuers included Cantabio Pharmaceuticals Inc. (previously Lion Consulting Group), Virtus Oil and Gas Corp. (previously Curry Gold Corp.); Steampunk Wizards (previously Freedom Petroleum); Black Stallion Oil and Gas Inc. (previously Secure IT Corp.); PetroTerra Corp. (previously Loran Connection Corp.); Black River Petroleum (previously American Copper Corp.); and Cyberfort Software Inc. (previously Patriot Berry Farms).<\/p>\n
\u201cFor years, Ronald Bauer orchestrated a sprawling \u2018pump-and-dump\u2019 scheme involving the shares of numerous U.S.-based issuers that preyed on ordinary retail investors,” said Damian Williams, U.S. attorney for the Southern District of New York, in a release.<\/p>\n
“While Bauer and his co-conspirators lived outside of the United States, they took advantage of the U.S. markets to perpetrate their fraud and reaped millions upon millions in profits at the expense of the victims,” he said.<\/p>\n