WASHINGTON—The principal of a Costa Rican brokerage firm was sentenced today in Miami to 20 years in prison for his role in a stock manipulation scheme that defrauded investors in a company called CO2 Technologies, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Chief Postal Inspector Guy Cottrell of the U.S. Postal Inspection Service (USPIS), and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office.
Jonathan Curshen, 47, the principal of Red Sea Management and Sentry Global Securities, was sentenced by U.S. District Judge Richard W. Goldberg. Red Sea Management and Sentry Global Securities are companies located in San Jose, Costa Rica that provided offshore accounts and facilitated trading in penny stocks.
In addition to his prison term, Curshen was sentenced to serve three years of supervised release and was ordered to forfeit approximately $7.3 million. Curshen and his co-defendant, Las Vegas stock promoter Nathan Montgomery, were convicted by a jury in January 2012 on all counts. Montgomery, 31, is scheduled to be sentenced by Judge Goldberg later today.
The evidence at trial showed that in January and February 2007, Curshen, of Costa Rica and Sarasota, Florida; and Montgomery, of Las Vegas, were involved in a scheme to illegally manipulate the stock price of CO2 Tech (ticker CTTD).
Evidence at trial showed that Curshen’s and Montgomery’s co-conspirators controlled the outstanding shares of CO2 Tech, which were used in the stock manipulation scheme. Montgomery and his conspirators engaged in coordinated trades in conjunction with the issuance of false and misleading press releases that were designed to artificially inflate the price of CO2 Tech shares to make it appear that it had significant business prospects. According to these press releases, CO2 Tech purported to have a business relationship with Boeing to reduce polluting gases emitted from airplanes, when, in fact, CO2 Tech never had any business or relationship with Boeing.
According to the evidence at trial, Montgomery and his co-conspirators, Robert Weidenbaum, Timothy Barham, Jr., Ryan Reynolds, and others fraudulently “pumped” the market price and demand for CO2 Tech stock through these press releases and coordinated trades of shares of CO2 Tech stock in order to create the appearance of legitimate buying interest by legitimate investors. The evidence showed that as Montgomery and his conspirators pumped the price of the stock, Curshen and his conspirators facilitated the “dumping” of shares through the trading desk at Red Sea and Sentry Global Securities by selling the shares to the general investing public. The evidence showed that these shares, which became virtually worthless, were purchased by unsuspecting investors, including investors in the Southern District of Florida. The evidence showed that Montgomery, Weidenbaum, Reynolds, and Barham were paid approximately $1 million in cash by their conspirators to participate in sham stock trades of CO2 Tech. The cash was delivered to them in Miami via a private jet from an airport outside New York.
The evidence further showed that, from approximately 2003 through 2008, Curshen operated Red Sea as a money laundering hub in Costa Rica that established bank accounts and brokerage accounts in the United States and Canada under false pretenses and through nominee owners. The evidence further showed that Curshen and his co-conspirators laundered the proceeds of the stock fraud from accounts in the United States to an account in Canada, all in an effort to conceal and disguise the nature and source of the proceeds.
Stock promoters Barham and Weidenbaum were sentenced yesterday to 30 months and 26 months in prison, respectively. Michael Krome, a securities attorney from New York who participated in the conspiracy and evaded federal securities registration requirements, was sentenced yesterday to 34 months in prison. Reynolds is scheduled to be sentenced at a later date.
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2 comments:
Andrew m Badolato was wired by the FBI and FBI turned a blind eye as he continued to con elderly people and others innocents . Some of the FBI agents in Tampa should be arrested and jailed for what they allowed Badolato to continue to do after they had the goods on him.I along with a few others have a preponderance of information to prove this. Badolato is a child molester as well as a trafficker of underage girls and 2 FBI agents out of Tampa were aware of this according to 2 others that have proof.They offered Badolato a pass if he would give info on Steve Bannon, Jonathan Curshen, Donald Trump and multiple others of financial and political power.Much to this story. Badolato is a very evil child predator and con artist that should be in prison for life but the FBI out of Tampa gave him a pass.
Andrew M Badolato of Sarasota,Florida is the Jeffery Epstein and Bernie Madoff of Sarasota, Florida. Lots of witnesses, audio and video to prove this.He is a child molester and sex trafficker of underage girls and a professional con artist but he is being watched and more proof is being collected.
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