Cane Connected To Yet Another Pump and Dump Scheme – And This Time, It’s Political

“I’ve never seen a super PAC used to promote a penny stock.”

In the era of super PACs, where an unlimited of money can be spent to campaign for or against political figures and policies, loose regulation and lack of oversight can make it a lucrative enterprise if abused just the right way.

And no one knows how to abuse the system better than Kyleen Cane.

As reported by ProPublica, a publically-traded company called CrossClick Media had been awarded a contract by a super PAC known as, “Voters For Hillary” to run call centers and provide other services for Hillary Clinton’s campaign. CrossClick (XCLK) stock, initially trading at a hundredth of a penny, soared in the OTC markets following the announcement, its price going up as much as twelve-fold. Anyone selling at peaks would’ve made a tidy profit, which indeed happened multiple times.

But as ProPublica investigated deeper into the relationships between CrossClick and Voters For Hillary, they discovered questionable relationships and spending habits (or lack thereof). It turned out that the majority shareholder for CrossClick is married to the chairman of Voters for Hillary, and that the super PAC has not spent one dime supporting Secretary Clinton’s campaign.

What’s interesting is the money loaned to Voters for Hillary. Some of the lenders, contributing sums up to $250,000, were also registered Republicans. Among the lenders was Kyleen Cane herself, who lent $10,700 of her own money.

Billions of CrossClick’s shares were outstanding by mid 2015, its price history resembling a sharp mountain ridge with steep drop-offs, a sure sign of pumping and dumping. Sadly, the names of whoever made a profit from dumping CrossClick’s shares will never be known as they are not public if trades contain less than 10% of total shares or the seller isn’t a senior officer.

But knowing her history, it’s very likely that Cane was one of those profiteers.

TERI BUHL's Blog Update. The Seedy World of Microcap Stock Advisors

TERI BUHL’s Blog Update. Republished here.

UPDATE March 6th 2015: AJ Discala’s trading partner at OmniView Capital has thrown in the towel. Marc E. Wexler who was charged on multiple counts of securities fraud plead guilty to two felony charges on October 15th and agreed to pay a forfeiture bond of $1.4 million. Wexler who lives in Colts Neck New Jersey plead to conspiracy to commit securities fraud and securities fraud in the stock CodeSmart ($ITEN). The DOJ’s original complaint said they believed Wexler had made $2.2 million in manipulative trading of CodeSmart. Sentencing appears to be held in Wexler’s case as it is possible he is turned government witness against his partner AJ Discala. Discala switched criminal lawyers a few months ago hiring New York-based Charles A. Ross. AJ and his fellow co-defendants are still slugging through motions for discovery and fighting the DOJ charges. Ex-SEC enforcement attorney Tom Sporkin who ran the microcap fraud unit is also helping Discala on the case. Sporkin is now a white-collar defense lawyer for Buckley Sandler in Washington D.C. The SEC parallel case was stayed in mid-November, which is typical when the DOJ leads on criminal charges. If convicted Discala faces years in prison. AJ told this reporter he will fight the case to trial.

Original Article Sep 18,2014
The CEO of a merchant bank that helped fund dozens of micro-cap companies claims he is a target of regulatory overreach after he was indicted in late July on ten counts of criminal misconduct for his alleged role in pump and dump stock schemes. Abraxas J. Discala (known as A.J.), CEO of Connecticut-based OmniView Capital Advisors, was arrested while on business in Las Vegas in July after the Justice Department revealed what appeared to the DOJ to be damaging wiretaps labeling him as a ringleader who tried to manipulate the price of penny stocks and mislead investors about financials in public companies. The DOJ used Discala’s status as the ex-husband of an actress to get their arrest splashed across international headlines in a move to show Obama’s task force on financial fraud is finally arresting Wall Streeters. But a look inside the deal documents show the Justice Department doesn’t know who the bad actors really are in this case. This reporter was given exclusive access to deal contracts, executive’s emails, and conducted interviews with some of the players involved in one of the alleged stock frauds called CodeSmart ($ITEN). The case shows a unique look at the backroom deals made to help small entrepreneurial companies raise capital through alternate public offerings and highlights the questionable tactics microcap advisors use to get discounted free trading stock.

Kyleen Cane’s Partner Brian Clark Is Also A Fraud

CYTTA CORP 8-K Nov 5, 2014

Odd behavior for Brian Clark, from the link:

Email Correspondence from Tad Mailander dated November 9th, 2104 Re Mr. Brian Clark

Mr. Mailander stated in his correspondence “I received the attached letter from Mr. Bryan Clark, Esq. Can you please confirm to me whether or not this lawyer represents Cytta? Your prompt response is appreciated.”  Mr. Mailander also advised that, he had received an earlier phone message from Mr. Clark wherein he identified himself as the attorney for EraStar, Inc. and Ms. Vanessa Luna. 

Upon reviewing the correspondence from Mr. Clark dated November 3rd, 2104 stating, “I write to advise you that we have been retained by Cytta Corp. and to request that you transfer the file to this firm as soon as possible. The file should include all electronically stored materials, including but not limited to correspondence, word processing and spreadsheet files, and all drafts thereof, complete with any metadata.” Cytta advised by Mr. Mailander by letter dated November 9th, 2014 that,

“Mr. Bryan Clark has never represented Cytta Corp. in any capacity.  The statements in his letter to you of November 3rd, 2014 are false.  You are specifically instructed by Cytta not to provide him with the documents and any other materials or matters requested.

Mr. Clark is known to me [Gary Campbell] as the partner of Ms. .Kyleen Cane in the firm of Cane Clark, until her arrest by the FBI on July 17th, 2014.  When Ms. Cane was arrested and charged for her involvement and her firms trust accounts use in a “$50 million dollar stock scam” involving mergers and Public Company disclosure, the EraStar principals suggested Mr. Clark continue as their lawyer.  Cytta rejected that suggestion and you (Tad Mailander) were retained by EraStar, Inc.   Please see news report regarding Kyleen Cane’s arrest and charges attached. We note Mr. Clark has now changed the name of his firm from “Cane Clark,” to simply “Clark” given Ms. Cane’s incarceration.  

Ms. Cane and Mr. Clark were providing legal services to EraStar, Inc. and were jointly the original lawyers chosen by the EraStar principals (Jens, Vanessa, Steffan and Jamison) to represent EraStar and act for them in the merger process. In fact, they prepared a draft merger Agreement which EraStar provided to me and, based upon the representations of the EraStar principals were providing ongoing legal advice to EraStar regarding their corporate actions and filings.

We are very disturbed by Mr. Clark’s letter.  His attempt to pass himself off as Cytta’s lawyer and collect the materials evidencing EraStar’s activities in your and Cytta’s possession is certainly misrepresentation and given his objective perhaps illegal.  

Erik Stephansen and I also received a letter from Mr. Clark describing himself as the Cytta attorney, describing the EraStar principals as the Directors of Cytta, and purporting to call a Director’s Meeting on November 13th, 2014.  He was once again seeking to obtain the very damaging EraStar materials in Cytta’s possession.”

Cytta also advises that pursuant to NRS 78.330 “each director holds office after the expiration of his or her term until a successor is elected and qualified, or until the director resigns or is removed.” The Bylaws of Cytta further provide inter alia that Directors may resign only by “giving written notice to the Board” of his resignation.  Cytta Corp., its Directors and Officers, Gary Campbell, Erik Stephansen, and John Dinovo have never signed or executed written resignations as Directors of Cytta, nor have we taken any steps to change the Officers.  Mr. Mailander confirms he has never received any documentation from Cytta Corp evidencing any changes to the Board or its Officers.

Cytta Corp. and its legal counsel is currently determining what the appropriate legal and/or regulatory disclosure and otherwise action to take, regarding Mr. Clark and possibly Ms. Cane’s actions and involvement in this matter specifically and all other actions of the Defendants.

 

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 …

 

 

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

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https://imgflip.com/i/3jktye

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

Corporate-Executives-Registered-Brokers-And-An-Attorney-Indicted-For-Orchestrating-A-300-Million-Market-Manipulation-Scheme-

Corporate Executives, Registered Brokers And An Attorney Indicted For Orchestrating A $300 Million Market Manipulation Scheme Involving Four Publicly Traded Companies.

Corporate-Executives-Registered-Brokers-And-An-Attorney-Indicted-For-Orchestrating-A-300-Million-Market-Manipulation-Scheme-

20140714 Corporate Executives, Registered Brokers And An AttorneyIndicted For Orchestrating A $300 Million Market ManipulationScheme Involving Four Publicly Traded Companies

http://www.justice.gov/usao/nye/pr/July14/2014Jul17.php?print=1

A ten-count indictment was unsealed this morning in federal court in Brooklyn, New York, against seven defendants, Abraxas J. Discala, also known as “AJ Discala,” the Chief Executive Officer of OmniView Capital Advisors LLC (“OmniView”); Marc Wexler, the Managing Director of OmniView; Ira Shapiro, the Chief Executive Officer of CodeSmart Holdings, Inc. (“CodeSmart”), a publicly traded company; Matthew Bell, a registered broker and investment adviser representative; Craig Josephberg, a registered broker; Kyleen Cane, an attorney; and Victor Azrak, the Vice President and Director of Excel Corp., a publicly traded company.1 The charges include securities fraud, wire fraud and conspiracy to commit securities fraud, mail fraud and wire fraud in connection with the fraudulent market manipulation of four publicly traded companies — CodeSmart, trading under the ticker symbol ITEN; Cubed, Inc. (“Cubed”), trading under the ticker symbol CRPT; StarStream Entertainment Inc. (“StarStream”), trading under the ticker symbol SSET; and The Staffing Group, Ltd. (“Staffing Group”), trading under the ticker symbol TSGL. In addition, the government restrained Discala’s residence in Norwalk, Connecticut, worth over $1 million, and seized a dozen bank and brokerage accounts containing criminal proceeds.

Juanita Jardine’s Bankruptcy 341 Creditors Examination.

Wallace Creditor Exam 11-04-13

Jan Wallace lying about her assets during a creditor exam.

Juanita Jardine aka Jan Wallace Resume – Every Company Listed Has Sued Her for Fraud.

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20070401 Jan Wallace aka Juanita Jardine aka Jan Jardine Resume and each company her attorney Kyleen E. Cane has either represented her personally, represented the corporation, or was her business partner: MW Medical and Dynamic Associates.