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Jul 09

Samuel DelPresto and how to run big pumps and dumps

I never got around to blogging about this but did follow the case closely and had uploaded the plea agreement and indictment in this case. A good summary of the case is here. So here are the links:

Samuel DelPresto guilty plea agreement (PDF)

From the plea agreement:

If DELPRESTO enters a guilty plea and is sentenced on this charge, and otherwise fully complies with all of the terms of this agreement, this Office will not initiate any further criminal charges against DELPRESTO for his involvement in stock market manipulation schemes between in or about 2007 to in or about 2013 involving the publicly traded stock of the following companies, among others: Kentucky USA Energy, Inc., (“KYUS”); Mesa Energy Holdings, Inc. (“MSEH”); Bioneutral Group, Inc., (“BONU”); Clear-Lite Holdings, Inc., (“CLRH”); NXT Nutritionals Holdings, Inc., (“NXTH”); Empire Post Media, Inc. (“EMPM”); Mustang Alliances, Inc. (“MSTG”); IDO Security, Inc. (“IDOl”); Brainy Brands Co., Inc. (“TBBC”); Premier Brands Inc. (“BRND”); and LTS Nutraceuticals, Inc. (“LTSN”).

That is a very impressive list of pump and dumps.

Charges against Samuel DelPresto (PDF) — For some reason this is not called an indictment but it reads like one. It has a good explanation of how the pumps and dumps worked.

The SEC also filed a civil lawsuit against DelPresto.

Interestingly in light of the recent plea deal by the former head trader at BMA Securities (market maker BMAS on the OTC), the accounts listed for forfeiture include one account at BMA Securities. I have no evidence indicating anyone at BMA Securities was involved with DelPresto.

 

Disclaimer. I have no position in any stock mentioned above. I have no relationship with any parties mentioned above. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.

19 comments

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  1. john damino

    so was he sentenced?

    1. Michael Goode

      Set/Reset Hearings as to SAMUEL DELPRESTO: Sentencing set for 10/4/2016 10:00 AM in Newark – Courtroom 5D before Judge Jose L. Linares. (lr, ) — so 1.5 months until his sentencing.

  2. Joseph Neibich

    Good. He belongs in jail.

  3. James

    How long will he be in jail ?

    1. Michael Goode

      See earlier comment — his sentencing hearing is in two days.

  4. Frank

    Will it be postponed yet again?

  5. James

    If I had read,I wouldn’t have asked .Can you post updates . Thank you

  6. Frank

    It was postponed again.

  7. James

    When is the new date ?

  8. Rene Pineda

    It seems that the maximum jail to he can get is 5 years

    The violation of 18 U.S.C. § 371 to which DELPRESTO agrees to plead
    guilty carries a statutory maximum prison sentence of 5 years and a statutory
    maximum fine equal to the greatest of: (1) $250,000; or (2) twice the gross
    amount of any pecuniary gain that any persons derived from the offense; or (3)
    twice the gross amount of any pecuniary loss sustained by any victims of the
    offense. Fines imposed by the sentencing judge may be subject to the payment
    of interes

  9. James

    Thank you for the update , when is the new date he will be sentenced ?

  10. James

    thank you , do you know the new date ?

    1. Michael Goode

      I don’t see a new sentencing date but likely it is in 2017 because he was granted a release to leave the US to visit family in Puerto Rico for Christmas.

      1. Frank

        I know the family. Nor he or his wife have family in Puerto Rico. Looks like he wants s vacation and was able to scam the court yet again. Interesting.

  11. James

    That makes no sense ? Since when do convicted felons have the choice to take a vacation before incarcerated ?

  12. James

    Your right Frank , very interesting

  13. Frank

    Is there any new date for sentencing?

  14. Louis V Catala

    Freaking crook deserves everything he gets

  15. Frank

    Any info if Delpresto in jail ?

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