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by Mike Caswell

Boston prosecutors have asked that a judge sentence Vancouver's Marco Babini to eight months of house arrest for an OTC Markets scheme that was "rotten through and through." They say that he planned to defraud investors of $1-million or more in a scheme that included kickbacks and paid promoters. (All figures are in U.S. dollars.) He intended to sell millions of shares while safely out of reach from his "perch in Canada."

The request from prosecutors comes as part of a case in which they cited Mr. Babini and others for a fraud on the OTC Markets with a company called Endeavor Power Corp., which supposedly had a proprietary testing system for infectious diseases. According to the government, Mr. Babini planned to secretly sell Endeavor Power shares through a Swiss nominee as he and others boosted the stock through a paid promotion and manipulative trades. Unfortunately for the men, they included an undercover FBI agent in their plans. There was no trial for Mr. Babini, as he pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud.

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