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SEC defendant Abujudeh receives probationary sentence

2024-04-11 21:06 ET - Street Wire

Also Street Wire (U-BRZL) Scepter Holdings Inc
Also Street Wire (U-CPMD) CannaPharmaRx Inc
Also Street Wire (U-ODYY) Odyssey Group International Inc

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by Mike Caswell

Charlie Abujudeh, a Canadian-linked stock promoter charged in New York for a 2020 pump-and-dump, has avoided jail, receiving a probationary term. The government said that Mr. Abujudeh was behind a scheme to boost a supposed biotech listing with claims that it had developed an anti-choking device that could be "AS BIG AS THE BABY MONITOR." His efforts, which included employing an Ontario lawyer and a Quebec call room, generated at least $2.5-million in gains, according to the government. (All figures are in U.S. dollars.)

Mr. Abujudeh's sentence is contained in a judgment handed down on April 9, 2024. The judge ordered him to serve two years of probation, during which he will be required to regularly report to a probation officer and will be subject to restrictions on where he can live, among other terms. In addition, the judge has permanently banned him from penny stocks.

Absent from the sentence was any jail term for Mr. Abujudeh. It is not clear if prosecutors had asked the judge to send Mr. Abujudeh to jail, as the government's sentencing submission was sealed. Mr. Abujudeh previously pleaded guilty, and may have had a deal with prosecutors with respect to his sentence. Federal sentencing guidelines, a complex set of math designed to approximate a sentence, produced jail terms as long as three years, but Mr. Abujudeh may have been able to offer prosecutors something in return for a lighter sentencing recommendation.

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Another crime committed in Canada against unsuspecting US investors.

No Canadian Federal Government oversight. NO Canadian Justice Department investigation. NO Canadian Criminal charges.

Priceless.

When is the US Justice Department going to start billing Canada for cleaning up their unregulated financial criminal syndicate.

Is this covered under the "USMCA"? How much should the United States be claiming in restitution for decades of Canadian crimes.

When will the Federal Canadian Government stops its own Criminal Investment firms from stealing from unsuspecting Investors.

Canadians should be embarrassed, this is shameful.

Posted by Dave at 2024-04-12 07:00

Dave..."The SEC claimed that Mr. Borden sold shares for Mr. Abujudeh, unloading the stock through unnamed Canadian brokerages for commissions of between 8 and 16 per cent."

Presumably, the shares were only 'parked' in accounts in Canadian brokerages. The purchasing, if the purchasers were U S residents, would have been through U S brokerages used by the U S residents.

Canada can't prosecute U S crimes, but the SEC can, and does.

Where Canada could do more in these types of cases is to go after the Canadians involved in these types of cases who actually live in Canada.

In BC (only in BC?) we have Unexplained Wealth Order court orders where the Province goes after the assets of individuals who haven't an explanation (tax return, lottery winnings, estate) for the accumulation of their assets. It has been successful, but who and why they target individuals is something I don't know.

The Canada Revenue Agency could also go after these people, but it's doubtful that the CRA subscribes to Stockwatch and I'm unsure how aggressive the tax department is these days.

You occasionally read that the IRS goes after individuals who are residents of the US, but the IRS seems not to go after non-residents.

Unfortunately, the U S is where the population and the money is.

"Unexplained Wealth Orders: Unexplained wealth orders are a type of court order that will require a person to explain in court to a judge how they acquired their assets.

Posted by halcrow at 2024-04-12 13:08