Fraud former attorney Kyleen E. Cane and her cohorts attempt to block the celebration of their long running scheme to pump-and-dump by threatening hosting providers, printing services, and basically anything which promotes the awareness of their con, we, at Asher Madison, have created royalty free copyright open graphics of Kyleen / Michael Cane, Jan Wallace and Amin Andy Lakha for all to enjoy. All that is needed is the following attribution.
Copyright Asher Madison (firstname.lastname@example.org, www.ashermadison.com) NOT fraud Kyleen/Michael Cane, NOT Jan Wallace, and NOT Amin Andy Lakha.
With most of Kyleen Cane’s motions to sever her trial and dismiss counts against her denied, it seems she’s running out of options.
Involved in a scheme to manipulate trading in four microcap stocks between October 2012 and July 2014, trading patterns resembling illegal pump and dump strategies, Kyleen Cane and her associates’ backs are against the wall with time running out as the trial date nears.
Cane’s best hope now is jury selection, of which she hopes her proposed questionnaire will help her get a favorable jury. Of note is the request for the addition of a question asking if the potential juror has had any prior negative experiences with an attorney (such as Cane) that would affect their ability to hear the case.
Even Cane knows dealing with attorneys like herself would leave a bad taste in people’s mouths.
Cane and her co-defendants go to trial on April 2nd, 2018.
Cane’s lawyers filed a pretrial motion on September 15th to, among other things, have her trial severed from her co-defendants, arguing that defendants DiScala and Josephberg are allegedly involved in four pump and dump schemes while Cane is only involved with one.
Referencing a Supreme Court case, Zafiro v. United States, Cane’s attorneys cited Rule 14 of the Federal Rules of Criminal Procedure to justify severing her trial:
If the joinder of offenses or defendants in an indictment…appears to prejudice a defendant or the government, the court may order separate trials of counts, sever the defendants’ trials, or provide any other relief that justice requires.
Cane’s camp further contends that most evidence used against DiScala and Josephberg would be irrelevant at her own individual trial, not to mention that DiScala and Cane will “blame the other for at least part of the allegations contained in the indictment…each will effectively act as a second prosecutor at a joint trial.”
“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.
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.
Note how each of the Kyleen E. Cane and Jan Wallace companies use Mujit Johal as their CFO, and how Devi Johal manages the off-shore LOM Securities entities where they deposit their unregistered securities.