An investment banker, along with his father and two brothers, were accused of reaping illegal profits by manipulating a reinsurer’s stock price.
Jason Galanis, once known as “Porn’s New King,” admitted to creating a stock scam, committing securities fraud, investment adviser fraud and two charges of conspiracy. As a result of his plea, Galanis agreed to forfeit nearly $38 million plus two properties he owns.
Galanis and his family were alleged to have orchestrated a $60 million bond scheme that targeted South Dakota’s Oglala Sioux Nation, using the proceeds towards other investments and personal luxury items.
Gerova Financial Group Ltd. was the reinsurer used for Galanis’ scheme. With the assistance of Gerova’s chairman, Gary Hirst, Galanis was able to amass more than 5 million shares and had his ownership interest hidden by a shell company. Galanis then allegedly bribed investment advisers to have their clients purchase Gerova shares.
As a result of the stock scam, Galanis netted himself approximately $20 million between 2007 and 2011. Along with Galanis, a broker named Gavin Hamels also pled guilty, while the alleged straw holder, Ymer Shahini, remains at large.
Galanis gained fame over a decade ago after purchasing the nation’s largest credit card payment processor for Internet pornography.
Call a Los Angeles Stock Fraud Attorney Today
If you invested in Gerova or with Galanis, Gavin Hamels, or members of Galanis’ family, you may have certain legal rights that require your immediate attention.
Contact an experienced Los Angeles stock fraud attorney today for a consultation to discuss your rights and options.