David Aubel Pleas Guilty in Green Energy Case

David Aubel Pleas Guilty in Green Energy Case

David Aubel has pled guilty in Massachusetts federal court to arranging a 2012 pump-and-dump scheme to manipulate the stock price of a waste and recycling company.

David Aubel, 59, admitted to securities fraud, wire fraud, and conspiring to commit those crimes with a New Hampshire-based partner to exploit the penny stock of Green Energy Renewable Solutions Inc. His partner, Robert J. Raffa, pled guilty in September.

Green Energy Pump-and-Dump Scheme

Aubel and Raffa allegedly bought millions of Green Energy shares and used four foreign entities to hide their controlling interest from the U.S. Securities and Exchange Commission. Prosecutors claim that the pair drove up the price of the shares by hiring a stock promoter to advertise the business in two rounds of email blasts and by making end-of-day share purchases.

When the price spiked during these promotional campaigns, Aubel and Raffa sold their shares. The pair had planned to sell substantially more through someone they believed to be a corrupt stockbroker, who actually was undercover FBI agent Christopher J. Burke.

According to a 2016 indictment and an affidavit from Burke, he caught the pair attempting to give brokers kickbacks for selling Green Energy shares.

Sentencing Scheduled for 2018 for David Aubel

The judge has scheduled sentencing for David Aubel for March 2018. Under the plea deal, Robert J. Raffa agreed with prosecutors’ assessment that he and his business partner stole more than $1.6 million. Under the deal, the government agreed not to appeal a prison sentence of 51 months or more and Aubel agreed not to appeal a sentence of 63 months or less.

Aubel’s partner Raffa has jointly agreed with prosecutors to spend one to three years behind bars, according to his plea agreement.

Investors Who Lost Money Coming Forward

Prosecutors have worked to contact potential victims of the Green Energy pump-and-dump scheme. To date, the government has contacted about 500 people who lost $500 or more. At least 55 sizable investors from across the U.S. have responded so far, claiming they were swindled out of a total of $238,000. Many other investors who lost smaller amounts also have come forward.

Have You Lost Money in an Investment Scheme?

If you believe you have been the victim of an investment scheme, you may have certain legal rights that require your immediate attention.

Call an Investment Fraud Attorney Today

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our investment fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

The pump-and-dump scam was a $250 million scheme.

Two Men Sentenced in $250 Million Pump-And-Dump Scam

Pump-And-Dump Scam Related to Cynk Technology Corp

A Brooklyn federal judge just sentenced two men to a 12-year and 6-year prison sentence for setting up companies that facilitated a $250 million scheme, related to Cynk Technology Corp., in offshore stock fraud, tax dodging and money laundering.

Robert Bandfield, who set up entities in Belize, was arrested upon his return to Florida to celebrate his birthday in 2014. Bandfield claimed that his involvement went beyond helping others create offshore entities, while the prosecution claimed it had strong evidence to the contrary and a lack of transparency regarding where much of the money went.

Before Bandfield was sentenced, Gregg Mulholland was sentenced for using offshore entities set up by Bandfield, including Legacy Global Markets SA, to engage in fraud that duped investors out of thousands of shares of Cynk Technology Corp., simultaneously circumventing IRS requirements under the Foreign Account Tax Compliance Act and to launder the fraudulent proceeds. Mulholland tried to flee the U.S. when he found out about Bandfield’s arrest.

Mulholland pled guilty to one count of money laundering conspiracy, while Bandfield was ordered to forfeit $1 million and his interests in several entities he created. Mulholland was ordered to forfeit his airplane, luxury car, two real estate properties in Canada and securities on deposits at more than 25 bank and brokerage accounts.

Six other defendants named in a five-count complaint from last year and remain at large and are considered fugitives. They are: Brian de Wit, Paula Psyllakis, Kelvin Leach, Rohn Knowles, Cem Can and Andrew Godfrey.

Did you invest with Cynk Technology Corp?

If you invested in one of the schemes run by Robert Bandfield or Gregg Mulholland, or invested in a similar pump-and-dump scam, you may have certain legal rights that require your immediate attention.

Call a Los Angeles Securities Fraud Attorney Today

Contact an experienced Los Angeles securities attorney today for a consultation to discuss your rights and options.