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

Daniel Martinez, a California lawyer who improperly sold $1.34-million worth of stock for Vancouver's Avtar Dhillon, has been sentenced to one year of probation and 100 hours of community service. (All figures are in U.S. dollars.) Prosecutors claimed that Mr. Martinez helped Mr. Dhillon secretly sell millions of shares through private entities. In doing so, Mr. Martinez failed as one of the "critical gatekeepers" in the markets, using his skills for an illegal purpose, the government said.

Mr. Martinez, 63, received his sentence in an appearance before a federal judge in Boston on Oct. 12, 2023. In addition to the probation and community service, Mr. Martinez must pay a $7,500 fine and forfeit $110,999. There was no trial, as he previously pleaded guilty to one count of the sale of unregistered securities.

The sentence is a partial loss for prosecutors. They had not sought a jail term for Mr. Martinez, but they did ask that the judge impose a sentence that included eight months of home detention. In seeking the home detention, they called Mr. Martinez's crime a "serious one that undermined the integrity of the securities markets." By helping an insider secretly sell shares, he deprived investors of the "full and fair disclosure" that securities laws provide for. Exacerbating Mr. Martinez's crime was the fact that he was a securities lawyer, prosecutors said.

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