Posted On: 08/24/2013 4:07:26 PM
Post# of 4754
Re: th3xf4ctor #1651
Read Here: http://www.stockwatch.com/News/Item....&news_region=C
Marc Riviello, one of seven men charged in a scheme that included Investors Hub operator Matthew Brown, has received eight months in jail. The sentence, handed down by Delaware Judge Sue Robinson, comes over one year after Mr. Riviello pleaded guilty to a charge that stemmed from his role in a $6.2-million pump-and-dump operation. (All figures are in U.S. dollars.)
Prosecutors claimed that he and others profited from the manipulation of four companies with misleading news and manipulative trades in 2006 and 2007. The stocks included Playstar Corp., an Ontario pink sheets listing that purported to be developing a text message system for cellphones. Mr. Riviello, who was a broker in California, served accounts that sold shares in the scheme, and helped the others relay money.
His eight-month sentence falls well short of the 10-year maximum for the charges he faced. Other terms of his sentencing include two years of supervised release, participating in a drinking driver program and enrolling in cognitive behaviour therapy (which is commonly used to treat substance abuse and anxiety, among other things). Full circumstances of his sentencing, including the sentencing recommendation, are not publicly available. For reasons not clear, recent court documents pertaining to him were filed under seal.
Riviello's charges
Full details of the allegations against Mr. Riviello are contained in a parallel civil suit that the U.S. Securities and Exchange Commission filed against him and others on May 21, 2009, in the District of Delaware. The SEC's complaint described the manipulations of Playstar and three other pink sheets listings: GH3 International Inc., Asia Global Holdings Inc. and Xtreme Motorsports of California Inc.
Mr. Riviello's role, as described by the SEC, included distributing cash from the manipulation of GH3 International, which claimed to be developing an anti-aging treatment. That portion of the scheme began in October, 2006, when the company improperly issued 312 million free-trading shares to Mr. Brown and another defendant, Polish resident Pawel Dynkowski, in a purported Rule 504 offering. Mr. Brown and Mr. Dynkowski then carried out a series of wash trades that were timed to coincide with misleading news releases, the SEC said. Among other things, the company claimed to have had revenues of $2.1-million in 2005. It also said that its 2006 revenue would be over $3-million. The stock went from 0.7 to 1.8 cents in the wake of the news (and was last at 0.01 cent).
According to the SEC, the men sold $747,609 worth of stock. After the pump-and-dump, a bank account Mr. Riviello controlled in the name of Westmark Capital Group Inc. received $253,000 in proceeds from the scheme. Mr. Riviello withdrew $220,000, and delivered the money to others.
The complaint also identified Riviello as having a role in another of the pump-and-dumps, that of Asia Global Holdings. The company purportedly had the rights to the show "Who Wants to be a Millionaire" in China. As with the GH3 manipulation, Mr. Brown and others improperly obtained shares of the company, which they then dumped. Mr. Riviello's role was serving as the broker on nominee accounts that the men used. According to the SEC, he accepted repeated sell orders that were obviously part of a pump-and-dump. The total proceeds from that portion of the scheme were $4.05-million.
The SEC sought injunctions preventing future violations of the U.S. Securities Act, appropriate civil penalties and disgorgement of profits. Its case has been on holding pending completion of the criminal cases against Mr. Riviello and the others.
At least one of those criminal cases could take some time to complete, as authorities have yet to arrest one of the suspects, Mr. Dynkowski. Police searched his home in 2008 after a Texas patrol officer intercepted a car that was to make a $146,000 cash delivery to him. After the officer discovered the cash, police had the driver deliver it to Mr. Dynkowski. They then searched his home and discovered evidence of market manipulations. By the time he was indicted, police were unable to locate him.
The others have either been sentenced or are awaiting sentencing. The strongest sentence so far went to Mr. Brown, who is serving four years in jail and must pay $4.78-million. Another man charged in the case was Florida resident Gerard D'Amaro, who received three years in jail and was ordered to forfeit $1.49-million. The final defendant, Jacob Canceli of California, has pleaded guilty and is scheduled for sentencing on Dec. 13, 2011.
http://www.stockwatch.com/News/Item....&news_region=C
***********************************
Federal Bureau of Prisons, an agency of the U.S. Department of Justice, Inmate Locator:
Name: Marc Riviello
Register #: 48373-112
Age-Race-Sex: 53-White-M
Release Date: 05-10-2012
Location: LOMPOC USP
The United States Penitentiary (USP) in Lompoc, California, houses medium security male inmates and should be considered an FCI Medium. It is part of the Lompoc Federal Correctional Complex (FCC). An adjacent satellite prison camp houses minimum security male inmates. USP Lompoc is located 175 miles northwest of Los Angeles, adjacent to Vandenberg Air Force Base.
************************************
Rubicon Financial Inc v. Marc Riviello
Rubicon Financial Inc – Form 10-Q – August 15, 2011:
In August of 2009, we filed a complaint in the Superior Court of the State of California, for the County of Orange – Central Justice Center (Case Number 30-2009-00294992-CU-BC-CJC), against Marc Riviello seeking collection of the $100,000 due and payable pursuant to a promissory note due June 1, 2009. On June 28, 2010, we received a judgment against Marc Riviello as follows:
1. For damages in the amount of $100,000;
2. For interest through the date of trial in the amount of $24,899.91;
3. For attorney’s fees in the amount of $15,000;
4. For costs in the amount of $1,137.26
For a judgment in the total amount of $141,037.17
We are currently seeking to collect on this judgment.
http://www.faqs.org/sec-filings/1108...L-INC_10-Q/#21
Marc Riviello, one of seven men charged in a scheme that included Investors Hub operator Matthew Brown, has received eight months in jail. The sentence, handed down by Delaware Judge Sue Robinson, comes over one year after Mr. Riviello pleaded guilty to a charge that stemmed from his role in a $6.2-million pump-and-dump operation. (All figures are in U.S. dollars.)
Prosecutors claimed that he and others profited from the manipulation of four companies with misleading news and manipulative trades in 2006 and 2007. The stocks included Playstar Corp., an Ontario pink sheets listing that purported to be developing a text message system for cellphones. Mr. Riviello, who was a broker in California, served accounts that sold shares in the scheme, and helped the others relay money.
His eight-month sentence falls well short of the 10-year maximum for the charges he faced. Other terms of his sentencing include two years of supervised release, participating in a drinking driver program and enrolling in cognitive behaviour therapy (which is commonly used to treat substance abuse and anxiety, among other things). Full circumstances of his sentencing, including the sentencing recommendation, are not publicly available. For reasons not clear, recent court documents pertaining to him were filed under seal.
Riviello's charges
Full details of the allegations against Mr. Riviello are contained in a parallel civil suit that the U.S. Securities and Exchange Commission filed against him and others on May 21, 2009, in the District of Delaware. The SEC's complaint described the manipulations of Playstar and three other pink sheets listings: GH3 International Inc., Asia Global Holdings Inc. and Xtreme Motorsports of California Inc.
Mr. Riviello's role, as described by the SEC, included distributing cash from the manipulation of GH3 International, which claimed to be developing an anti-aging treatment. That portion of the scheme began in October, 2006, when the company improperly issued 312 million free-trading shares to Mr. Brown and another defendant, Polish resident Pawel Dynkowski, in a purported Rule 504 offering. Mr. Brown and Mr. Dynkowski then carried out a series of wash trades that were timed to coincide with misleading news releases, the SEC said. Among other things, the company claimed to have had revenues of $2.1-million in 2005. It also said that its 2006 revenue would be over $3-million. The stock went from 0.7 to 1.8 cents in the wake of the news (and was last at 0.01 cent).
According to the SEC, the men sold $747,609 worth of stock. After the pump-and-dump, a bank account Mr. Riviello controlled in the name of Westmark Capital Group Inc. received $253,000 in proceeds from the scheme. Mr. Riviello withdrew $220,000, and delivered the money to others.
The complaint also identified Riviello as having a role in another of the pump-and-dumps, that of Asia Global Holdings. The company purportedly had the rights to the show "Who Wants to be a Millionaire" in China. As with the GH3 manipulation, Mr. Brown and others improperly obtained shares of the company, which they then dumped. Mr. Riviello's role was serving as the broker on nominee accounts that the men used. According to the SEC, he accepted repeated sell orders that were obviously part of a pump-and-dump. The total proceeds from that portion of the scheme were $4.05-million.
The SEC sought injunctions preventing future violations of the U.S. Securities Act, appropriate civil penalties and disgorgement of profits. Its case has been on holding pending completion of the criminal cases against Mr. Riviello and the others.
At least one of those criminal cases could take some time to complete, as authorities have yet to arrest one of the suspects, Mr. Dynkowski. Police searched his home in 2008 after a Texas patrol officer intercepted a car that was to make a $146,000 cash delivery to him. After the officer discovered the cash, police had the driver deliver it to Mr. Dynkowski. They then searched his home and discovered evidence of market manipulations. By the time he was indicted, police were unable to locate him.
The others have either been sentenced or are awaiting sentencing. The strongest sentence so far went to Mr. Brown, who is serving four years in jail and must pay $4.78-million. Another man charged in the case was Florida resident Gerard D'Amaro, who received three years in jail and was ordered to forfeit $1.49-million. The final defendant, Jacob Canceli of California, has pleaded guilty and is scheduled for sentencing on Dec. 13, 2011.
http://www.stockwatch.com/News/Item....&news_region=C
***********************************
Federal Bureau of Prisons, an agency of the U.S. Department of Justice, Inmate Locator:
Name: Marc Riviello
Register #: 48373-112
Age-Race-Sex: 53-White-M
Release Date: 05-10-2012
Location: LOMPOC USP
The United States Penitentiary (USP) in Lompoc, California, houses medium security male inmates and should be considered an FCI Medium. It is part of the Lompoc Federal Correctional Complex (FCC). An adjacent satellite prison camp houses minimum security male inmates. USP Lompoc is located 175 miles northwest of Los Angeles, adjacent to Vandenberg Air Force Base.
************************************
Rubicon Financial Inc v. Marc Riviello
Rubicon Financial Inc – Form 10-Q – August 15, 2011:
In August of 2009, we filed a complaint in the Superior Court of the State of California, for the County of Orange – Central Justice Center (Case Number 30-2009-00294992-CU-BC-CJC), against Marc Riviello seeking collection of the $100,000 due and payable pursuant to a promissory note due June 1, 2009. On June 28, 2010, we received a judgment against Marc Riviello as follows:
1. For damages in the amount of $100,000;
2. For interest through the date of trial in the amount of $24,899.91;
3. For attorney’s fees in the amount of $15,000;
4. For costs in the amount of $1,137.26
For a judgment in the total amount of $141,037.17
We are currently seeking to collect on this judgment.
http://www.faqs.org/sec-filings/1108...L-INC_10-Q/#21
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