In fact, Nava served as CEO of Surf Financial and he conspired with a licensed attorney and others in converting the debt of various publicly traded companies into unrestricted stock under materially false and fraudulent pretenses. He and his co-conspirators then sold the unrestricted stock for a profit.
Furthermore, Nava admitted that he and his co-conspirators executed their fraudulent scheme by entering into agreements in which he sold shares of stock in different companies through public-market exchanges.
They only did the transaction after fraudulently filing with the Securities and Exchange Commission (SEC) for an exemption of registration requirements for selling securities in the public marketplace.
According to Nava, he concealed his involvement in the transactions by using other nominees. After the sale of millions of shares of stocks to the public, he transferred the proceeds from the securities-fraud scheme into bank accounts under his direct control.
Moreover, he admitted to owning and running an unlicensed money transfer business to launder proceeds from his fraudulent securities transactions in other countries. He operated the business from 2017 to 2018.
