Stock Promoter litigation follow-up: Jay Fung in prison for Insider trading, more litigation for Anthony J. Thompson Jr.

I usually ignore SEC insider-trading litigation so I managed to miss when Jay Fung was arrested for insider-trading on a takeover (specifically, the Gilead takeover of Pharmasset in 2011). This was a follow-up to SEC v. Kevin L. Dowd (3:13-cv-00494) and USA v. Kevin Dowd (3:13-cr-00636-AET), all in the US District Court for the District of New Jersey (links are to dockets at CourtListener.com). The original civil complaint (pdf) was brought by the SEC on January 25, 2013. The final judgment against Dowd ordered him to pay $33,325 to the SEC. As to the criminal complaint, Dowd plead guilty and was sentenced to 3 years probation and forfeiture of $35,000.

The criminal complaint against Dowd listed his co-conspirators (the ones who actually traded on the information) as follows:

j. Co-conspriator J.F. was defendant DOWD’s childhood friend, and resided in or around Del Ray Beach, Florida. Among other things, J.F. operated “Company A” , which maintained a brokerage account with a brokerage firm headquartered in Shrewsbury, New Jersey (“Brokerage Firm B”). J.F. previously worked at a penny stock promotion company in Boca Raton, Florida (the “Stock Promotion Company”) from approximately in or about 2000 to approximately in or about late 2006, where defendant DOWD also worked between in or about May 2000 through in or about July 2001.

k. Co-conspirator E.B. resided in or around Boca Raton, Florida, and among other things, was the vice president of “Company B” , a business based in Boynton Beach, Florida. E.B. worked at the Stock Promotion Company with co-conspirator J.F. from
approximately in or about 2003 through in or about 2005, and knew defendant Dowd.

“Con-conspirator J.F.” was later revealed to be Jay Fung when he was charged on information on March 9, 2016 and immediately pled guilty. The case was US v. Fung (3:16-cr-00107) in the US District Court, District of New Jersey. On January 17, 2018 he was sentenced to 1 year in prison to be followed by 3 years of supervised release. Jay Fung forfeited $345,245.

Jay Fung is currently imprisoned at CI Taft:

Previously, Jay Fung had been sued by the SEC for his promotion of RecycleTech (RCYT). That case was SEC v. Recycle Tech, Inc (1:12-cv-21656) in the US District Court, Sourthern District of Florida. I blogged about that case when it was first filed in 2012. In that case, the final judgment against Jay Fung was rendered on February 14th, 2014. Fung and his company Pudong LLC were judged to be jointly and severally liable for disgorgement of $456,457 along with interest of $30,998.36. Fung was also ordered to pay a civil penalty of $120,000.

Criminal and Civil cases against Jay Fung, Anthony J. Thompson Jr., and Eric Van Nguyen

The Manhattan District Attorney charged a number of stock promoters including the three listed above, back in 2014. The case is 03853-2014 in Manhattan Supreme Court. I first reported on that case in September 2014 and then provided an update on September 26th, 2017.

The summary of the criminal case is below:

The charges (at least against Thompson) are shown below:

Charge Detail Disposition/Sentence
PL 165.52 00 C Felony, 1 count, Arrest charge, Not an arraignment charge

Description Cpsp-2nd:value Of Prop >$50000
Indictment Count 7
Dismissed
PL 165.54 00 B Felony, 2 counts, Arrest charge, Not an arraignment charge

Description Cpsp-1st:value Prop > $1000000
Indictment Count 16
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 20
Date Added 09/03/2014
Dismissed
GB 0352C 05
**TOP CHARGE**
E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >9 Perso
Indictment Count 12
Date Added 09/03/2014
Pled Guilty
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 23
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 27
Dismissed
PL 165.52 00 C Felony, 1 count, Arrest charge, Not an arraignment charge

Description Cpsp-2nd:value Of Prop >$50000
Indictment Count 33
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 39
Date Added 09/03/2014
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 52
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 66
Date Added 09/03/2014
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 73
Dismissed
GB 0352C 05 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >9 Perso
Indictment Count 77
Date Added 09/03/2014
Dismissed
GB 0352C 05 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >9 Perso
Indictment Count 1
Date Added 09/03/2014
Dismissed
PL 190.65 1A E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Scheme Def 1st:10 Or> Persons
Indictment Count 30
Date Added 09/03/2014
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 53
Date Added 09/03/2014
Covered By Gb 0352c 05
PL 190.65 1A E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Scheme Def 1st:10 Or> Persons
Indictment Count 61
Date Added 09/03/2014
Dismissed
PL 190.65 1B E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Scheme Def 1st:property> $1000
Indictment Count 62
Date Added 09/03/2014
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 85
Date Added 09/03/2014
Dismissed
PL 190.65 1A E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Scheme Def 1st:10 Or> Persons
Indictment Count 2
Date Added 09/03/2014
Covered By Gb 0352c 05
PL 190.65 1B E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Scheme Def 1st:property> $1000
Indictment Count 6
Date Added 09/03/2014
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 19
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 9
Date Added 09/03/2014
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 11
Date Added 09/03/2014
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 26
Date Added 09/03/2014
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 41
Date Added 09/03/2014
Dismissed
PL 165.54 00 B Felony, 1 count, Arrest charge, Not an arraignment charge

Description Cpsp-1st:value Prop > $1000000
Indictment Count 49
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 55
Date Added 09/03/2014
Dismissed
GB 0352C 05 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >9 Perso
Indictment Count 46
Date Added 09/03/2014
Pled Guilty
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 57
Date Added 09/03/2014
Covered By Gb 0352c 05
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 68
Date Added 09/03/2014
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 71
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 28
Date Added 09/03/2014
Dismissed
PL 190.65 1B E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Scheme Def 1st:property> $1000
Indictment Count 31
Date Added 09/03/2014
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 45
Date Added 09/03/2014
Dismissed
PL 190.65 1B E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Scheme Def 1st:property> $1000
Indictment Count 48
Date Added 09/03/2014
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 69
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 83
Date Added 09/03/2014
Dismissed
PL 190.65 1B E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Scheme Def 1st:property> $1000
Indictment Count 3
Date Added 09/03/2014
Dismissed
PL 190.65 1A E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Scheme Def 1st:10 Or> Persons
Indictment Count 5
Date Added 09/03/2014
Dismissed
PL 165.54 00 B Felony, 2 counts, Arrest charge, Not an arraignment charge

Description Cpsp-1st:value Prop > $1000000
Indictment Count 15
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 8
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 24
Date Added 09/03/2014
Covered By Gb 0352c 05
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 36
Dismissed
GB 0352C 05 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >9 Perso
Indictment Count 29
Date Added 09/03/2014
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 43
Date Added 09/03/2014
Dismissed
PL 190.65 1A E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Scheme Def 1st:10 Or> Persons
Indictment Count 47
Date Added 09/03/2014
Dismissed
PL 155.40 01 C Felony, 1 count, Arrest charge, Not an arraignment charge

Description Gr Lar 2nd:property Val>$50000
Indictment Count 65
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 70
Date Added 09/03/2014
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 72
Date Added 09/03/2014
Dismissed
GB 0352C 05 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >9 Perso
Indictment Count 60
Date Added 09/03/2014
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 80
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 81
Date Added 09/03/2014
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 82
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 84
Dismissed
PL 155.30 01 E Felony, 1 count, Arrest charge, Not an arraignment charge

Description Gr Lar 4-vlue Prpty>$1000
Indictment Count 10
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 25
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 37
Date Added 09/03/2014
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 42
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 44
Dismissed
PL 165.52 00 C Felony, 1 count, Arrest charge, Not an arraignment charge

Description Cpsp-2nd:value Of Prop >$50000
Indictment Count 50
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 59
Date Added 09/03/2014
Dismissed
PL 165.54 00 B Felony, 2 counts, Arrest charge, Not an arraignment charge

Description Cpsp-1st:value Prop > $1000000
Indictment Count 63
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 74
Date Added 09/03/2014
Dismissed
PL 190.65 1A E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Scheme Def 1st:10 Or> Persons
Indictment Count 78
Date Added 09/03/2014
Dismissed
PL 190.65 1B E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Scheme Def 1st:property> $1000
Indictment Count 79
Date Added 09/03/2014
Dismissed
GB 0352C 05 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >9 Perso
Indictment Count 4
Date Added 09/03/2014
Dismissed
PL 190.65 1B E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Scheme Def 1st:property> $1000
Indictment Count 14
Date Added 09/03/2014
Dismissed
PL 165.54 00 B Felony, 1 count, Arrest charge, Not an arraignment charge

Description Cpsp-1st:value Prop > $1000000
Indictment Count 32
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 40
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 54
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 56
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 58
Dismissed
PL 165.54 00 B Felony, 2 counts, Arrest charge, Not an arraignment charge

Description Cpsp-1st:value Prop > $1000000
Indictment Count 64
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 21
Dismissed
PL 190.65 1A E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Scheme Def 1st:10 Or> Persons
Indictment Count 13
Date Added 09/03/2014
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 22
Date Added 09/03/2014
Covered By Gb 0352c 05
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 38
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 67
Dismissed
PL 155.35 01 D Felony, 1 count, Arrest charge, Not an arraignment charge

Description Grand Larceny 3rd Degree
Indictment Count 75
Dismissed
GB 0352C 06 E Felony, 1 count, Not an arrest charge, Not an arraignment charge

Description Securities Fraud >$250
Indictment Count 76
Date Added 09/03/2014
Dismissed

 

The appearances in the case are shown below. Unfortunately, details are not given so I cannot be sure if any of the defendants have been dropped from the case. Sentencing is scheduled for September 27th, 2018.

Date/
Time
Judge/
Part
Calendar
Section
Arraignment/
Hearing Type
Court
Reporter
Outcome/
Release Status
09/27/2018
Scherzer, A
TAP A
SENTENCES Sentencing  
06/05/2018
Antignani, S
TAP A
SENTENCES Sentencing Castellano, L
Adjourned For Sentencing
Released on Recognizance
05/17/2018
Scherzer, A
TAP A
SENTENCES Sentencing Wilson, T
Adjourned For Sentencing
Released on Recognizance
02/08/2018
Edwards, E
TAPA-93
SENTENCES Sentencing Geraldi, Vincent
Adjourned For Sentencing
Released on Recognizance
09/27/2017
Biben, E
TAPA-93
TRIALS AM No Type Whitaker,
Pled Guilty
Released on Recognizance
09/18/2017
Biben, E
TAPA-93
TRIALS AM No Type Whitaker, B
Adjourned
Bail Continued
09/13/2017
Biben, E
TAPA-93
TRIALS AM No Type Whitaker, B
Adjourned
Bail Continued
09/05/2017
Biben, E
TAPA-93
TRIALS AM No Type Geraldi, V
Adjourned
Bail Continued
07/21/2017
Biben, E
TAPA-93
TRIALS AM No Type Hudson,
Adjourned
Bail Continued
06/08/2017
Conviser, Daniel
95
TRIALS AM No Type Kramsky, L
Adjourned
Bail Continued
05/12/2017
Conviser, Daniel
95
TRIALS AM No Type Davidson, C
Edwards, C
Adjourned
Bail Continued
05/02/2017
Conviser, Daniel
95
TRIALS AM No Type Kramsky, L
Adjourned
Bail Continued
04/04/2017
Conviser, Daniel
95
TRIALS AM No Type Kramsky, L
Adjourned
Bail Continued
01/27/2017
Conviser, Daniel
95
TRIALS AM No Type Kramsky, Lisa
Adjourned
Bail Continued
01/20/2017
Conviser, Daniel
95
TRIALS AM No Type Kramsky, L
Adjourned
Bail Continued
01/19/2017
Conviser, Daniel
95
TRIALS AM No Type Kramsky, L
Adjourned
Bail Continued
01/11/2017
Conviser, Daniel
95
TRIALS AM No Type Kramsky, L
Bruno, E
Dismiss Some, Not All Counts
Bail Continued
01/06/2017
Conviser, Daniel
95
TRIALS AM No Type Bruno, E
Adjourned
Bail Continued
12/05/2016
Conviser, Daniel
95
TRIALS AM No Type Davidson, C
Adjourned
Bail Continued
11/18/2016
Conviser, Daniel
95
TRIALS AM No Type Davidson, C
Adjourned
Bail Continued
11/15/2016
Conviser, Daniel
95
TRIALS AM No Type Davidson, C
Adjourned
Bail Continued
10/11/2016
Conviser, Daniel
95
TRIALS AM No Type Mcneill, D
Adjourned
Bail Continued
09/20/2016
Conviser, Daniel
95
TRIALS AM No Type Gale, Geralyn
Adjourned
Bail Continued
09/13/2016
Conviser, Daniel
95
TRIALS AM No Type Fleming, J
Adjourned
Bail Continued
07/12/2016
Conviser, Daniel
95
TRIALS AM No Type Tiardo, E
Adjourned
Bail Continued
06/07/2016
Conviser, Daniel
95
TRIALS AM No Type Geralyn, Gale
Kramsky, L
Adjourned
Bail Continued
05/17/2016
Conviser, Daniel
95
TRIALS AM No Type Demattia, L
Adjourned
Bail Continued
04/20/2016
Conviser, Daniel
95
TRIALS AM No Type Postel, M
Adjourned
Bail Continued
02/26/2016
Conviser, Daniel
95
TRIALS AM No Type Minelli, L
Adjourned
Bail Continued
02/23/2016
Conviser, Daniel
95
TRIALS AM No Type Minelli, L
Adjourned
Bail Continued
01/15/2016
Conviser, Daniel
95
TRIALS AM No Type Mcneill, D
Adjourned
Bail Continued
12/15/2015
Conviser, Daniel
95
TRIALS AM No Type Huntington, D
Conroy, E
Adjourned
Bail Continued
12/01/2015
Conviser, Daniel
95
TRIALS AM No Type Minelli, L
Adjourned
Bail Continued
09/08/2015
Conviser, Daniel
95
TRIALS AM No Type Huntington, D
Adjourned
Bail Continued
02/24/2015
Conviser, Daniel
95
TRIALS AM No Type Torres-fuster, L
Adjourned
Bail Continued
02/06/2015
Conviser, Daniel
95
TRIALS AM No Type Corcoran, R
Adjourned
Bail Continued
02/05/2015
Conviser, Daniel
95
TRIALS AM No Type Corcoran, R
Adjourned
Bail Continued
01/06/2015
Conviser, Daniel
95
TRIALS AM No Type Benkel, V
Adjourned
Bail Continued
12/09/2014
Conviser, Daniel
95
TRIALS AM No Type Huntington, D
Adjourned
Bail Continued
12/02/2014
Conviser, Daniel
95
TRIALS AM No Type Benkel, V
Adjourned
Bail Continued
11/18/2014
Conviser, Daniel
95
TRIALS AM No Type Aiello, C
Adjourned
Bail Continued
09/22/2014
Hayes, R
85
TRIALS AM No Type Kramsky,
Adjourned
Bail Continued
09/11/2014
Hayes, R
85
ARRAIGNMENTS Regular Aiello, Cynthia
Pled Not Guilty, Returned On Warrant
Bond $1,000,000 (Bond)
09/03/2014

GRAND JURY
MISCELLANEOUS No Type   True Bill, Warrant Ordered

 

The most recent decision in the case that I can access is from May 16th, 2016. Decisions do not appear to be accessible through the court’s website.

SEC Case against Anthony J. Thompson et al

Notwithstanding my ignorance of the exact outcome of the criminal case, the civil case has resumed (see docket). This week (on July 11th) the SEC alleged the following in a letter (document 99):

We write in advance of the July 10, 2018 prehearing conference in this matter in order to provide the Court with additional background as to the status of this litigation. Unfortunately, it has become apparent that defendant Anthony J. Thompson (“Thompson”) has engaged in a pattern of obfuscation and delay. The SEC has recently obtained documents from other litigation in which Thompson is involved that suggest not only that he has deliberately delayed the discovery process in the SEC action, but that his misconduct might be far broader than originally thought, and that Thompson might have significant assets secreted abroad.

As to defendant Jay Fung, he was agreed to a settlement offer that the staff is prepared to submit senior management and the Commission for review.

The other litigation referred to by the SEC is his divorce, Kendall Thompson v. Anthony J. Thompson, Jr., Case No. 147268-FL, and a trust litigation “in which Kendall [Thompson] alleges that Thompson has fraudulently diverted assets from a trust supposedly set up for the benefit of their children to pay for drugs and prostitutes, among other things.” (The quote is from the first footnote in the above-linked letter.)

This letter highlights how the SEC had agreed to a settlement with Thompson but he never formally agreed and now with the new allegations it is my opinion that the SEC will not settle with Thompson:

After approximately two months of what the SEC believed were good faith settlement discussions, Thompson has failed to formally agree or execute the settlement papers sent to him.

Information Obtained From the Matrimonial Case and the Trust Litigation

The SEC has learned from an initial and by necessity cursory review of some of the materials it has recently received of certain facts that are potentially material to the case at bar. These facts include that Thompson, in addition to the funds received in from the schemes set out in the Complaint, sold off OTC Solutions, Inc. for $6 million. The SEC was also informed that Thompson has been providing “consulting” services to companies located in Belize, might have been paid several million dollars in Belize. The SEC further learned that Thompson might have converted his ill-gotten gains into luxury cars and boats, and jewelry, including expensive watches. Finally, from reviewing the pleadings in those cases the SEC learned that Thompson was accused of similar dilatory and obfuscatory discovery tactics therein, including failing to adequately produce tax returns, banking information, and other financial data.

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.

 

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