Gregg Mulholland Charged With Securities Fraud and Money Laundering
Remember Cynk Technology Corporation (CYNK)?
In July of 2014, shares of CYNK, which seemingly had no business to speak of (no assets, no revenues, ONE employee), started to soar. And soar. And some some more.
On June 16th, 2014, shares of the company closed at just 6 cents per share on ZERO volume. As a matter of fact, volume has been nil for the previous month as well.
On June 17th, 2014, interest started to pick up in the company, and shares suddenly soared to $2.25 on no news. Were stock promoters suddenly becoming involved in the company?
Shares of the company continued to soar. At one point, Cynk Technology Corporation was worth $6 billion, which is more than some S&P 500 companies are worth. Shares of the company had soared from just 6 cents per share to near $22 over the course of a month, with nothing in the way of news to account for the dramatic rise.
At this point, the SEC stepped in and froze trading for a two-week period. Shares of the company plummeted by 85% once they re-opened for trading, wiping out billions of dollars in "value".
One share of the company now trades for 15 cents.
Earlier this week, Gregg Mulholland was arrested at Phoenix International Airport during a layover of his flight from Mexico to Canada. Mulholland was charged with securities fraud and money laundering conspiracies during a formal announcement from Acting U.S. Attorney Kelly Currie in Brooklyn, New York. In addition, the Securities and Exchange Commission has also filed a civil lawsuit against Mulholland after it alleged that Mulholland "surreptitiously" accumulated 84% of a company called Vision Plasma Systems Inc. and then liquidated his stake for proceeds of "at least" $21 million.
According to prosecutors, Mulholland was responsible for the manipulation of a number of public US companies. Prosecutors went on to say that Mulholland then laundered the proceeds of these manipulations through various offshore law firms in order to avoid detection from the Internal Revenue Service.
In the matter of Cynk Technology Corporation, Mulholland reportedly amassed tens of millions of shares of CYNK before dumping after cashing in a very large profit.
Mulholland faces up to 20 years in prison if he is found guilty of these charges.
Source: BusinessInsider.com - A US-Canadian dual citizen has been charged with running a $300 million manipulation scheme around penny-stock CYNK
Filed under: General Knowledge