U.S. Charges Belize Agents Linked to Cynk’s Stock Surge
Two men working out of the same Belize building as the penny-stock company Cynk Technology Corp. (CYNK), which surged to a market value of more than $6 billion for an hour in July, were among six people accused by the U.S. of helping clients evade securities and tax laws.
Robert Bandfield and Andrew Godfrey worked with investors to conceal penny-stock stakes and evade reporting requirements, the Securities and Exchange Commission said in a complaint filed today in federal court in Brooklyn, New York.
The men, who ran IPC Corporate Services LLC, were charged with conspiring to commit securities fraud, tax fraud and money laundering, according to an indictment unsealed today in Brooklyn.
The defendants “set up sham companies with figureheads at the helm in an attempt to deceive U.S. law enforcement and regulators and bragged about their scheme to their clients,” Brooklyn U.S. Attorney Loretta Lynch said today in a statement.
A brokerage that’s also on that floor, Titan International Securities — named as a defendant in the criminal case — held millions of shares of Cynk stock for clients this year, according to documents obtained by Bloomberg.
Source: bloomberg
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