Kyleen Cane Seeks to Modify Conditions of Her Release to Leave the Country

Kyleen E. Cane’s co-defendants and her companies sued by the SEC.

I have to admit that I threw up in my mouth reading the pleadings in Cane’s Motion to Modify Conditions of Release to Permit Travel to Edinburgh, SCOTLAND! (20150526 Mtn to Modify Conditions of Release to Permit Travel to Edinburgh, Scotland)  (Exhibit A: 20150526 Exhibit A Cane Appearance Bond, Exhibit B: 20150526 Exhibit B Cane’s Passport Surrender Receipt, Exhibit C: 20150526 Exhibit C Recording Cover Page Confession of Judgment $1m Bond) In it, she argues that her son needs help moving his furniture into the dorm rooms. Since Cane has a plane and has been flying around the U.S. without incident and that since she posted $1m in property for her bond – she should be able to renew her passport and travel to Scotland to move furniture. Jesus.

The motion states that Cane has enrolled in microbiology courses for a new career “when the case is over”.  Sixty-year-old Cane, who has ruined the financial livelihood of so many people can be so callous to think about her “next career”. Her next career should be serving her sentence of 20-30 years, is that even enough?

To be clear Cane partners with Jan Wallace (Juanita Jardine) and her daughter Chloe Jardine-Cutler to cache money in Bermuda and Cayman Islands at LOM Securities.  (20120216 MP IRS Form 211 (all)) Chloe, of Chloe Group of Companies has even been staying with Cane.  Cane has been planning on escaping the U.S. when she is caught for securities fraud and has lined the pockets of Wallace-Jardine’s offshore shell companies for when that day comes.  That day is here.

How Cane is able to be released on pre-trial is beyond me: she has/flies a plane, she has tens of millions of dollars at her disposal, she has aided dozens of individuals commit wire fraud, money laundering, securities fraud, and tax evasion.  There are many people invested in helping Cane disappear than gambling with her turning evidence and negotiating a plea in exchange for a 5K1.1 (http://www.ussc.gov/guidelines-manual/2011/2011-5k11).  The government’s opposition states, “As described in the Indictment, Cane is charged with participating in a stock market manipulation scheme, and the evidence against her consists of, among other things, her own statements regarding coordinated purchasing of the manipulated stock captured over a court-authorized wiretap. If convicted, the government estimates that the applicable range of imprisonment under the current version of the United States Sentencing Guidelines for Cane would be 262 to 327 months, assuming Cane falls within Criminal History Category One.” (20150528 Opposition to Cane’s Mtn to Modify Conditions of Pre-Trial) Footnote, This sentencing range assumes a total offense level of 39, based on a base offense level of 7 (U.S.S.G. § 2B1.1(a)(1)), plus 28 levels for an intended loss of over $200,000,000, (U.S.S.G § 2B1.1(b)(1)(M)), plus 2 levels for the use of sophisticated means (U.S.S.G. § 2B1.1(b)(10)(C)), plus 2 levels for abuse of a special skill. The intended loss is based on the market capitalization of the manipulated stock at its peak of approximately $200 million.

262 to 327 months, 262 months is 21.83 years and 327 is 27.25 years. Cane’s birthday is October 22nd, 1954, she is 60 years old. Does anyone think that Cane will return to the U.S. facing 20-30 years? What is the consequence for Cane to try to run and at least live out 5 years or 10 years on the lam? She is going to die in prison, the time for her to run is now. 

The government argues, “At the detention hearing held in this district on July 29, 2014, the transcript of which is attached as Exhibit A, Magistrate Judge Reyes previously determined there are conditions of release that will reasonably assure the appearance Cane as required: those conditions included surrendering her passport, signing a $1,000,000 personal recognizance bond, co-signed by two others, and posting real property as collateral. Over the government’s objection, Cane has been permitted to travel freely in the United States, provided she provides advance notice to Pretrial Services in Nevada, and she is permitted to fly her own plane within the United States. Ex. A at 8-9.” (20150528 Exhibit A Transcript of July 29th, 2014 Arraignment of Kyleen Cane) If anyone thinks that an attorney under indictment has business to conduct in the U.S. that requires flying around, I’m disappointed in you.  Cane has certainly been planning movements of money, preparing where to flee to, and setting up who is to handle her affairs in the U.S..

What I found ridiculous and somewhat unbelievable is the following from the government’s opposition, “Also, when she was arraigned in New York, it appeared, based on her statements to Pretrial Services, that Cane had personal assets in excess of $5 million plus part ownership of business assets estimated to be worth more than $13 million. Ex. A at 7-8.  The one piece of real property that she posted to secure the $1 million bond appears to be worth less than $400,000. ”  If anyone believes that Cane does not have a significant stockpile of cash which she has secreted away with Wallace,  they are clearly unprepared for a rude awakening.  For Cane to have worked in dozens of publicly traded companies (penny stocks and otherwise), a decade long partnership with Wallace, and had a career amounting to $5million is simply not credible. The Davi Skin securities fraud alone was a $5m boon to LOM Securities nominee accounts. Cane architected a stockpile of funds, and the government has done nothing to prosecute money laundering co-conspirators Juanita Jardine and Chloe Jardine-Cutler and others that will help Cane when she is on the run.