The man accused in the $78 million pump-and-dump scheme has filed a plea deal

The man accused in the $78 million pump-and-dump scheme has filed a plea deal

A businessman accused in an alleged $78 million pump-and-dump scheme is seeking $3.5 million in restitution from an attorney’s trust fund.

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A British businessman accused in an alleged $78 million pump-and-dump scheme is taking the Law Society of BC to court to recover more than $3.5 million it paid into the trust fund of a former BC lawyer appointed as a professional . misconduct

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In November 2015, the US Securities and Exchange Commission filed a complaint against some of the alleged perpetrators of the scheme related to Jammin’ Java’s stock.

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One of the alleged masterminds of the scheme was British businessman Kevin Miller, 46, of St. Brelade, resident of Jersey.

The commission alleged that the perpetrators made millions in illegal profits at the expense of the investing public and tried to hide their wrongdoing through complex offshore networks.

Pump-and-dump scheme promoters attempt to inflate the price of a stock with false or misleading statements about the company. After the stock price rises, fraudsters want to make a profit by selling shares of the stock, dumping the stock on the market. After the stock is dumped, the price usually falls and investors lose money.

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In October 2017, the SEC announced that it had obtained a $58 million judgment against Wayne Weaver, who was charged in the scheme. The verdict also ordered others to pay large sums, including Miller, who agreed to pay $738,369 and $116,631 in interest.

Miller signed the settlement agreement without admitting or denying the SEC’s allegations.

He has now filed a petition in the BC Supreme Court claiming he is entitled to $2,974,399 and CDN 583,114 in the trust accounts of Ronald Norman Pelletier’s law practice. The law firm has custody over these trust accounts.

In April 2018, the law firm sought and obtained an injunction barring Pelletier from operating a trust account pending resolution of a subpoena against him for alleged professional misconduct. The subpoena alleges that between September 2014 and May 2018, Pelletier engaged in activities that aided or abetted dishonesty, crime or fraud.

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Pelletier was charged with using or permitting the use of CDN$24,092,710 to CDN$5,360,839 or all of CDN$24,092,710 to CDN$5,360,839 on behalf of one or more clients, pending a securities fraud investigation by the SEC. when he found out

Earlier this year, the bar court held a disciplinary hearing for Pelletier, a former member of the bar who stopped practicing in 2018. A decision on this matter is pending.

In his petition, Miller says he paid from Pelletier’s trust funds for legal services and is entitled to reimbursement from the settlement agreement he eventually reached with the SEC.

“The SEC’s complaint against Mr. Miller has been fully resolved,” the petition states. “There is no legal reason for (the bar association) to continue to withhold Mr. Miller’s trust funds.”

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Miller says he has made several attempts to recover the money for nothing, and lawyers for the law society told him BC’s bar regulatory body was filing a petition with the court to deal with the matter. He said that no such request has been submitted yet.

There has been no response to the petition, which contains allegations that have not been tested in court. The law firm did not respond to a request for comment.

A Toronto law firm representing Miller said in an email that there would be no comment as the case is before the courts.

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