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SEC defendant Ciccarelli facing 33-month sentence

2024-05-22 19:52 ET - Street Wire

Also Street Wire (U-RARS) Rarus Technologies Inc

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by Mike Caswell

Boston prosecutors have requested a 33-month jail term for Drew Ciccarelli, the South Carolina man charged for the pump-and-dump of Rarus Technologies Inc., a supposed developer of a social media advertising platform. Mr. Ciccarelli moved $4-million in promotional payments from hidden insiders, collecting a $500,000 fee for his efforts, prosecutors claim. (All figures are in U.S. dollars.) Those behind the scheme included an unidentified B.C. resident.

The proposed jail term for Mr. Ciccarelli is contained in a sentencing memorandum that prosecutors filed on Wednesday, May 22, in federal court in Boston. There was no trial for Mr. Ciccarelli, as he previously pleaded guilty to a charge of conspiracy to commit securities fraud, and agreed that he realized $500,000 in gains from the scheme. While he faces a maximum term of five years, prosecutors agreed to give him credit for accepting responsibility.

In seeking the 33-month term, prosecutors describe Mr. Ciccarelli's role as "very serious." He allowed hidden insiders to secretly promote stocks by acting as a middleman. He accepted money from those insiders and arranged for paid promotions, keeping investors unaware of the "stark conflict-of-interest at play." His actions allowed the undisclosed insiders to unload their stock before the promotions ended and before the share prices of the companies abruptly declined, the memorandum states.

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