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by Mike Caswell

David Gordon, the Oklahoma securities lawyer facing life in jail in a $41.8-million pump-and-dump case, could be hiding proceeds from his crimes in Canada, prosecutors claim. (All figures are in U.S. dollars.) In a recent court filing, the government says that Mr. Gordon wired money to co-conspirators who had offshore accounts in Canada, the Bahamas, and the Turks and Caicos Islands. The co-conspirators included Dean Sheptycki, the former Canadian broker who is a fugitive in the case.

The government made the claim in support of its request that the judge keep Mr. Gordon in jail, where he has been residing since an Oklahoma jury convicted him on charges that included securities fraud, wire fraud and money laundering. The conviction, entered on April 30, 2010, after a 13-day trial, was for the fraudulent promotions of four pink sheets companies. Also convicted was Mr. Gordon's co-accused, Richard Clark.

According to prosecutors, both men face lengthy sentences that could amount to life in jail. The pair are planning to appeal their convictions, and are attempting to secure their release from jail while their appeal is heard. The government opposes their release, on the grounds that the men could have sent money offshore and that they have plenty of incentive to flee prosecution.

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