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by Mike Caswell

New York prosecutors have indicted six men, including two Canadians, for a $500-million scheme they claim facilitated the manipulation of many U.S.-listed stocks. (All figures are in U.S. dollars.) The men set up an offshore system that allowed insiders of U.S. companies to hide substantial share positions, prosecutors claim. The scheme had more than 100 corrupt clients, who were able to secretly buy and sell public companies and then launder the proceeds, according to the government.

Among the six defendants are two Canadians: Brian De Wit, 45, and Cem Can (also known as Jim Can), 44. Prosecutors claim that Mr. De Wit helped a client manipulate Cannabis-Rx Inc., a pink sheets listing that traded as high as $13.77 before quickly falling to 50 cents. He and Mr. Can live in Belize, and the U.S. will seek their extradition from that country.

The only U.S. citizen charged is Bob Bandfield, 70. Prosecutors claim that he founded the company that ran the scheme, IPC Corporate Services LLC. Authorities arrested him in Miami, and he is the only defendant in U.S. custody so far. The other defendants are Andrew Godfrey, 51, Kevin Leach, 34, and Rohn Knowles, 29. Two of the three, Mr. Leach and Mr. Knowles, are citizens of the Bahamas, while Mr. Godfrey is a citizen of Belize. The U.S. plans to seek their extradition as well.

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