Cellphone call helped make stock manipulation case against corporate lawyer, FBI says.

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http://www.abajournal.com/news/article/Cellphone_call_helped_make_insider-trading_case_against_securities_lawyer/

A corporate lawyer in Nevada is among seven defendants federally indicted Thursday in Brooklyn, New York, in a claimed “pump-and-dump” scheme involving microcap stock.

Attorney Kyleen Cane is accused of playing a role in an alleged plan to artificially inflate the share price in the stock of a company known as Cubed, according to the Wall Street Journal (sub. req.).

A FBI press release provides additional details about Cane, who is accused of working with other defendants to orchestrate so-called match trades and wash trades that would slowly inflate the price of the stock in a seemingly legitimate manner.

“The defendants used an escrow account maintained by Cane to successfully control the price and volume of Cubed’s stock,” the release states.

Among the evidence cited by the government in the case is a cellphone call made in May by co-defendant Abraxas “A.J.” Discala, 43. He is the CEO of OmniView Capital Advisors LLC, a Connecticut company that bills itself as a merchant banking firm, the Wall Street Journal reports.

During the call, Discala allegedly said, referring to the use of Cane’s escrow account, “I’m the f—— brake and the gas, jackass. If I take my foot off the brake it’s 55 [dollars] tomorrow.” His comment was followed by laughter, the FBI says.

Attorney Joseph Tacopina represents Discala. He told the Wall Street Journal the allegations will be vigorously defended. Cubed lawyer Ira Sorkin told the Wall Street Journal that “if called upon, we intend to fully cooperate with the authorities.”

The feds have recently been involved in a flurry of enforcement actions concerning microcap stock and in some cases have been using tactics—like undercover stings—that typically have been reserved for organized crime, the Wall Street Journal says.

‘Sopranos’ star’s ex-husband, others accused of $300 mln stock fraud.

Reuter’s Article Re Kyleen E. Cane’s Securities Fraud

(Reuters) – U.S. authorities unveiled criminal charges on Thursday accusing seven people, including a banking executive once married to a star of “The Sopranos,” of running a $300 million stock manipulation scheme that cheated elderly and other investors.

Abraxas Discala, the chief executive officer of merchant banking firm OmniView Capital Advisors and former husband of Jamie-Lynn Sigler, who played Meadow Soprano on the hit HBO series, was charged in an indictment unsealed in Brooklyn, New York, with 10 criminal counts including securities fraud, wire fraud and conspiracy.

Discala, who is 43 and known as A.J., and the other defendants were accused of using “pump-and-dump” and other illegal tactics to artificially control prices and trade volumes in four companies from October 2012 to July 2014.

Authorities said they used wiretaps to help uncover the scheme, which involved misleading press releases and regulatory filings, rapid trading, concealing conspirators’ ownership stakes, and unauthorized purchases for unwitting investors.

“When the defendants stopped their criminal game of musical shares, it was the unsuspecting investors who were left holding the bag,” Brooklyn U.S. Attorney Loretta Lynch told a news conference.

Joseph Tacopina, a lawyer for Discala, said: “Anyone who knows A.J. is shocked by these allegations. And that is exactly what they are, merely allegations.”

The four companies are CodeSmart Holdings Inc, Cubed Inc, StarStream Entertainment Inc and Staffing Group Ltd.

Others indicted were OmniView President Marc Wexler, 52; CodeSmart CEO Ira Shapiro, 53; brokers Matthew Bell, 47, and Craig Josephberg, 41; Kyleen Cane, 59, a Las Vegas lawyer; and Victor Azrak, 32, vice president of Excel Corp.

The U.S. Securities and Exchange Commission brought civil charges against all but Cane and Azrak.

“This was a brazen manipulation scheme calculated to enrich Discala and his accomplices using, in many cases, the retirement savings of innocent and unwitting retail investors,” SEC enforcement chief Andrew Ceresney said.

Lynch said the scheme boosted the stocks’ market caps to $300 million, causing investor losses of at least $50 million alone on CodeSmart, the first company targeted.

Law enforcement intervened before unsuspecting investors could lose money in the other companies, she said.

Kyleen Cane – CNBC Coverage and and the SEC Complaint.

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http://www.sec.gov/litigation/litreleases/2014/lr23046.htm

20140717 SEC v Discala, Wexler, Bell, Josephberg, Shapiro Case No CV14-4346 20140729 SEC v Discala Docket 20140717 Coversheet NBC Breaking News Cane Accused of $300 million stock fraud.

Articles Regarding Kyleen Cane’s Indictment/Arrest.

A.J.-Discala-ex-husband-of-Jamie-Lynn-Sigler-arrested-in-300-million-pump-and-dump-stock-scheme-feds-New-York-Daily-News

http://www.reuters.com/article/2014/07/17/usa-crime-stockfraud-sopranos-idUSL2N0PS1GU20140717

http://www.nydailynews.com/new-york/nyc-crime/ex-husband-jamie-lynn-sigler-arrested-alleged-pump-dump-stock-scheme-article-1.1870350

http://www.mysanantonio.com/news/local/article/Broker-indicted-in-300M-stock-manipulation-5629491.php

http://www.ft.com/intl/cms/s/0/44bea4c2-0dc5-11e4-85ab-00144feabdc0.html

Sopranos-stars-ex-husband-others-accused-of-300-mln-stock-fraud-Reuters

Articles regarding Kyleen Cane’s Indictment.

‘Sopranos’ star’s ex-husband, others accused of $300 mln …

A.J. Discala, ex-husband of Jamie-Lynn Sigler, arrested in …

Broker indicted in $300M stock manipulation – San Antonio …

US authorities charge seven over ‘pump and dump’ scheme …

Penny stock bust includes ex-husband of ‘Sopranos’ star

‘Sopranos’ Star’s Ex, Others Accused of $300 Million Stock …

FBI: Norwalk man orchestrated $300 million market scheme …

Las Vegas Attorney Indicted in $300 Million Market …

Kyleen Cane, 59, an attorney from Las Vegas, Nevada was indicted with six other persons last week in a federal court in Brooklyn, New York. The ten-count indictment involved orchestration of a $300 million scheme to manipulate the market with the stocks of four publicly-traded companies. The FBI said in a press release that the defendants made profits by selling to elderly investors worthless stock of a company that was supposed to provide medical coding training required by the Affordable Care Act.

The charges against Cane and the other defendants include securities fraud, conspiracy to commit securities fraud, mail fraud, wire fraud and conspiracy to commit securities fraud, and wire fraud in connection with the fraudulent market manipulation of four publicly traded companies. The involved companies include CodeSmart, Cubed Inc., StarStream Entertainment Inc., and The Staffing Group, Ltd.

Besides seizing the residence of one of the accused, the government also seized a dozen bank and brokerage accounts containing illegal earnings.

The indictment was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).

Seven Indicted in Stock Manipulation Scheme | The …

Cellphone call helped make stock manipulation case …

 

 

Kyleen E. Cane Indicted on Securities/Wire/Mail Fraud Charges.

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20140715 US v Cane et al Case No 14-00399

Pilot Kyleen Cane is a Flight Risk.

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ORDER TO APPEAR IN THE DISTRICT WHERE CHARGES ARE PENDING AND TRANSFERRING BAIL as to Kyleen Cane. Defendant must appear at the U.S. District Court- Eastern District of New York on 8/15/2014 at 10:00 AM as directed. Signed by Magistrate Judge Carl W. Hoffman on 7/17/2014. (Copies have been distributed pursuant to the NEF – SLD) (Entered: 07/18/2014)

Kyleen Cane – FAA Registry – Airmen – AirmenInquiry – Airmen Details

Ms. Cane has an airmen’s license for single engine, helicopter, and instrument for airplane and helicopter. Her cell number (702) 595-8005. Her partnership with Jan Wallace and their offshore bank accounts (20120216 MP IRS Form 211 (all)_Redacted) makes Ms. Cane an absolute flight risk.

U.S. v Cane Case No 1:14-CR-00399 Initial Pleadings.

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20140715 US v Cane et al Case No 14-00399

20140718 Order Re Wiretap Investigation 20140717 Unsealing Order 20140717 Notice of Related Cases SEC v Discala 20140715 US v. Cane Docket 20140715 US v Cane et al Case No 14-00399 20140715 Information Sheet 20140715 Application for Leave to File Under Seal 20140714 Corporate Executives, Registered Brokers And An AttorneyIndicted For Orchestrating A $300 Million Market ManipulationScheme Involving Four Publicly Traded Companies

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