The SEC has filed a lawsuit against an attorney and others for their involvement in a “pump and dump” scheme involving a shell company, an unwitting technology entrepreneur as CEO, and dumping (selling) shares after artificially inflating their value.
Attorney, Luke Zouvas, and his associates, Cameron Robb and Christopher Larson, Jason Schiprett, and Robert Jorgenson, crafted a plan to excite investors about their shell company, Crown Dynamics Corp. Larson alone netted nearly $865,000.
Zouvas was the legal advisor to the shell company, and assisted Larson by overseeing the transfers of stock certificates to and from buyers who were unaware that they even owned the stock. The buyers never invested funds nor received proceeds from sales.
Crown Dynamics underwent a sham IPO in 2011, in which 40 shareholders were listed as buyers without even knowing they invested funds in the project. Once the shell was set up, the team brought in an unwitting entrepreneur to generate enough excitement over their bogus enterprise to bring them a profit.
By claiming that the company was about to release a revolutionary new product to the market, share prices increased sufficiently to net Larson $865,000 in ill-gotten gains. For his involvement, Zouvas received over $10,000 in proceeds and fees.
Call a California Attorney Specializing in Securities Fraud Today
If you invested with Crown Dynamics, Christopher Larson, Luke Zouvas, or any of their associates, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles securities fraud attorney today for a consultation to discuss your rights and options.