Back in September 2007 as I was first getting into shorting pumps and dumps, there was a huge mailer pump of a company that seemed to have a nice business plan — online booking of private jets. This company, Connect-a-Jet, was a complete sham and every press release put out by the company to coincide with the pump was a lie. I either did not short Connect-a-Jet at all or only shorted in very small size because I was scared of that fact that it was a non-SEC reporting company so I couldn’t be sure if they really had assets. That was foolish and a little investigation would have revealed the company to be a complete scam.
It is nice to see criminal convictions in these cases because prison terms are much more of a deterrent than SEC fines.
Martin Cantu, 58, a Round Rock [Texas] attorney, was convicted of conspiracy to commit securities fraud and securities fraud after a six-day trial.
He faces up to five years in federal prison and a $250,000 fine for conspiracy and 20 years and a $250,000 fine for securities fraud. He will be sentenced on Sept. 9 by U.S. District Judge Ed Kinkeade.
Stock promoter and company founder Jason Wynn, 32, of Lantana, Texas, pleaded guilty to conspiracy on April 30 and is awaiting sentencing.