The U.S. Securities and Exchange Commission (SEC) stopped a transatlantic microcap fraud scheme operated by a father and son and their associates.
On Thursday, the SEC announced that it filed a securities fraud lawsuit against Timothy Page, and his son Trevor Page.
Timothy Page is a citizen of the United Kingdom. He is a recidivist. In 2007 and 2009, the Commission sued him for violating federal securities laws in connection with several stock offerings.
The SEC also named five entities as defendants in the case including Ticino Capital Limited, Wellesley Holdings Limited, Porrima Limited, Emergent Investment Company, and FJ Investments International.
Additionally, the SEC also included Timothy Page’s wife, Janan Page as a relief defendant in the lawsuit. Her husband and son allegedly directly deposited illegal proceeds to her bank and brokerage accounts. Timothy and Trevor also used her brokerage account to conduct manipulative trading of stocks.
Furthermore, the Commission filed another securities fraud lawsuit against Daniel Cattlin and William Shupe for their roles in the microcap fraud scheme.
In the complaints, the SEC alleged that Timothy and Trevor Page along with their associates and engaged in a scheme to acquire million of shares in publicly traded microcap companies in the United States. The father and son allegedly used the five defendant entities to conceal their control or holdings in the microcap companies.
Timothy and Trevor Page allegedly engaged in manipulative trading. They hired call centers and made misleading statements to lure investors to purchase the microcap stocks. Their scheme resulted in the artificial demand for the microcap stocks and then dumped or sold their shares.
Furthermore, the SEC alleged in the second complaint that Cattlin and Shuppe used their insider roles as officers or majority shareholders of several microcap companies to help Timothy and Trever Page carry out their scheme.
Cattlin and Shuppe allegedly help the father and son to secretly purchase and sell millions of shares in microcap companies including EnviroTechnologies
International, BioHemp International, and Cyberfort Software inc.
The defendants’ microcap fraud scheme generated more than $10 million in illegal stock sales, according to the SEC.
In a statement, SEC Boston Regional Office Director Paul Levenson said, “As we allege in the complaints, the defendants took elaborate steps to hide their fraudulent conduct. We will continue to pursue bad actors, whether located in the U.S. or abroad, who engage in complex schemes to generate illicit profits at the expense of U.S. investors.”
The SEC is seeking a court order freezing the assets of Timothy, Trevor, and Janan Page as well as the assets of the five entity defendants.
The Commission is also seeking permanent injunctions, disgorgement of ill-gotten gains plus interest, and civil penalties against all the defendants.
Furthermore, the SEC is seeking an order prohibiting Cattlin, Shuppe, and Trevor Page from trading penny stocks. It is also requesting the court to ban the Pages, Cattlin, and Shupe from serving as an officer or director in publicly traded companies.
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