Two California men were charged for their involvement in a microcap stock kickback scheme.
Sandip Shah, 40, was charged in an indictment with nine counts of wire fraud and Shailesh Shah, 47, was charged in an Information with two counts of mail fraud and two counts of wire fraud. Both are from Chino, California, and were previously arrested on February 27, 2014.
According to the charging documents, Sandip Shah was in the business of promoting penny stocks and assisting public companies in finding sources of funding. Shailesh Shah was the president and chief executive officer of two publicly traded companies, SOHM Inc. and Costas Inc. Shailesh Shah agreed to pay secret kickbacks to an investment fund representative in exchange for having the investment fund buy stock in his two publicly-traded companies. The kickbacks were concealed through the use of sham consulting agreements and other fraudulent documents.
According to the charging documents, Sandip Shah agreed to introduce the investment fund representative to executives of publicly traded companies so that those executives could enter into the kickback arrangement. In exchange for the introductions and for facilitating the kickback arrangements as they continued, Sandip Shah accepted a portion of the kickbacks paid by the executives. What the defendants did not know was that the purported investment fund representative was actually an undercover agent.
The charges follow a lengthy investigation focusing on preventing fraud in the microcap stock markets. Microcap companies are small publicly traded companies whose stock often trades at pennies per share.
If convicted, each defendant faces a statutory maximum penalty of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gain or loss on each count.
Get the latest breaking current news and explore our Historic Archive of articles focusing on The Mafia, Organized Crime, The Mob and Mobsters, Gangs and Gangsters, Political Corruption, True Crime, and the Legal System at TheChicagoSyndicate.com
Showing posts with label Shailesh Shah. Show all posts
Showing posts with label Shailesh Shah. Show all posts
Subscribe to:
Posts (Atom)
Best of the Month!
- The Chicago Syndicate AKA "The Outfit"
- Mob Hit on Rudy Giuilani Discussed
- Chicago Mob Infamous Locations Map
- Convicted Family Secrets Cop to Petition Police Pension Board to Keep Pension
- Mob Murder Suggests Link to International Drug Ring
- Growing Up the Son of Tony Spilotro
- Mobsters at the Apalachin Mob Meeting
- Chicago Mob's Family Secrets Told in Rockford
- Sammy Gravano and the Devil Dogs
- Prison Inmate, Charles Miceli, Says He Has Information on Mob Crimes