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by Mike Caswell

Prosecutors in Connecticut have asked for a five-year prison term for Diane Dalmy, the Vancouver-linked lawyer who pleaded guilty to charges stemming from a series of pump-and-dumps. They say that she was an experienced securities lawyer who helped inflict $10-million in losses on investors. (All figures are in U.S. dollars.) Among other things, she wrote opinion letters in another lawyer's name and laundered some of the proceeds of the fraud through her trust account.

The request from the government comes with Ms. Dalmy awaiting sentencing on a conspiracy charge. Prosecutors said that she helped others as they boosted a handful of shell companies listed on the OTC Markets. She pleaded guilty on Feb. 6, 2018, and has been free on bond while the judge considers her sentence.

In seeking the five-year jail term, prosecutors cite her part in a similar case that traced back to Vancouver and included disbarred lawyer John Briner. They say that in 2016, the U.S. Securities and Exchange Commission fined her after she filed materially false opinion letters supporting the listings of several questionable companies. (The case prosecutors are referring to is an administrative matter in which the SEC pursued Ms. Dalmy for her part in a shell factory scheme. The regulator said that she wrote the opinion letters in support of an effort by Mr. Briner at listing 20 purported mining companies. Mr. Briner had attempted to create the companies as shells by using sham property deals and nominee officers. The SEC stopped the scheme in its early stages, and ultimately fined Ms. Dalmy $680,000.)

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