In a financial thriller that spans borders, federal prosecutors in Massachusetts dropped a bombshell on Thursday, announcing the indictment of a former California attorney, Luis Carrillo, and four Canadians, including Frederick L. Sharp, in an alleged $140 million pump-and-dump scheme. The charges, including criminal securities fraud, have sent shockwaves through legal circles, uncovering a sophisticated pump and dump scheme that spanned nearly a decade.
The Accused: Former Attorney and Canadian Co-Conspirators
Luis Carrillo, a 50-year-old former securities attorney from California, has been thrust into the center of the storm, along with Canadians Frederick L. Sharp, Courtney M. Kelln, Mike K.G. Veldhuis, and Paul Sexton. These individuals now face criminal securities fraud charges, with Carrillo believed to be in Mexico at present. The intricate web of allegations suggests a calculated scheme involving multiple players.
The “Q” Platform: A Web of Deception Unveiled
At the heart of the alleged scheme is Frederick L. Sharp, who, according to the indictment, created a clandestine platform named “Q.” This platform played a pivotal role in masking participants’ identities during the sale of substantial shares. Sharp’s ingenuity involved creating companies to hold shares, employing encrypted communication channels, and collaborating with a Swiss asset management firm, Wintercap SA, to process stocks in a manner that avoided detection.
