In a dramatic turn of events, Ohio federal prosecutors have delivered a resounding blow to a pump-and-dump scheme that aimed to artificially inflate the stock price of Global Resource Energy Inc., purportedly linked to the tantalizing promise of hemp-infused wine.
Hemp Wine Pump And Dump Lawsuit : The Scheme Unveiled
Revealed through painstaking investigation, the scheme orchestrated by seven individuals involved manipulation of Global Resource Energy Inc. stock. Scott Levine, a central figure in the operation, orchestrated trades between insiders and unsuspecting investors, according to the U.S. Attorney’s Office for the Northern District of Ohio.
Deception Unmasked
Gary Kouletas, along with others, utilized the PAG Group as a front to strike clandestine deals with insiders, pushing free-trading stock into the market. False promises and deliberate concealment were rampant, with investors misled about the true nature of their investments.
Hemp Wine Pump And Dump Lawsuit : Devastating Losses
The repercussions were severe. Investors, lured by the allure of promising returns, found themselves ensnared in a web of deceit. Nearly 50 individuals were left reeling from losses exceeding $2 million, having invested in what turned out to be worthless stocks.
Years of Deception
The elaborate ruse spanned from February 2014 to August 2020, during which the defendants engineered a scheme to grant themselves millions of shares at negligible costs, fueling the illusion of prosperity.
Justice Served
With the gavel finally falling, sentences were meted out. Levine, the orchestrator, received an 18-month sentence, while Kouletas faced the longest term, serving 43 months behind bars. Restitution to investors was mandated, with the government reclaiming over $400,000 thus far.
Hemp Wine Pump And Dump Lawsuit : Guilty Pleas
All seven defendants—Levine, Kouletas, Thomas Collins, Patrick Thomas, Hughe Duwayne Graham, Brian Kingsfield, Tyler Paulson—admitted guilt, culminating in a combined sentence of 165 months in prison, dealt by the relentless pursuit of justice.
Silence Amidst the Storm
As the dust settles, silence reigns from the defendants’ counsel, unable to immediately provide comment. The FBI’s Cleveland Division, credited with unraveling the scheme, remains tight-lipped, leaving the echoes of justice reverberating.
Hemp Wine Pump And Dump Lawsuit : Seeking Redemption
While Kouletas finds representation with Michael F. Bachner of Bachner & Associates PC, Levine is guided by Jeffrey Cox of Sallah Astarita & Cox LLC. Counsel for the remaining defendants remains elusive, as the government, through Alejandro A. Abreu, continues its quest for closure.
