This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

The U.S. Securities and Exchange Commission has filed civil fraud charges against California resident Joseph Padilla, citing him and another man for a scheme in which they helped insiders of several companies secretly unload millions of shares on the markets, in one case facilitating the illegal sale of over $100-million worth of stock amidst a paid promotion. (All figures are in U.S. dollars.) The SEC says that the men routed share sales and money through offshore accounts, at one point meeting with someone Mr. Padilla called a "straight gangster banker." The firms they used in the scheme included an unnamed Canadian brokerage, the SEC claims.

The allegations are contained in a civil complaint that the SEC filed on Tuesday, June 13, in federal court in Boston. The complaint identifies Mr. Padilla, 54, as a resident of Carlsbad, Calif., and Cabo San Lucas, Mexico. Also a defendant is Kevin Dills, 66, of Carlsbad as well.

The case centres around a scheme which Mr. Padilla allegedly enabled insiders of a handful of public companies to sell large quantities of shares on the market. He provided what the SEC calls a "layer of disguise," allowing insiders to sell their stock without making the proper disclosure, the complaint states. The SEC also claims that he manipulated some of the companies that the insiders were selling.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS