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Two of the three men charged with a brazen plot to hijack dormant mailbox companies and fraudulently pump up their stocks will now plead guilty to the case in October, court records show.
One of the defendants, Christopher James Rajkaran of Queens, New York and Guyana, had a hearing in federal court in Minnesota scheduled for October 7th, records show.
A judge last week denied Rajkaran’s recent efforts to bail out from a Minnesota prison and said he posed “a serious risk of no-show”. Rajkaran’s attorney refused to comment on Tuesday.
The other defendant, Mark Allen Miller, who is free with an unsecured personal loan guarantee of $ 25,000, is due to plead guilty in the same court on Oct. 14, according to an amendment to the complaint last week.
Miller’s attorney did not immediately respond to a request for comment.
Miller, a general contractor who lives in Breezy Point, Minnesota and Rajkaran, previously pleaded not guilty to 15 securities fraud, securities fraud conspiracy, and wire transfer fraud cases.
Their amendment notices do not state which crimes they are guilty of.
The third defendant in the case, Saeid Jaberian, remains on his way to trial for the time being.
Jaberian, a Minnesota resident also known as Andre Jaberian, has pleaded not guilty to the same charges as the other two men and is free with an unsecured loan of $ 25,000.
The trio were charged with grand jury charges in June on charges of using fake letters of resignation allegedly provided by others to take control of four mailbox companies – Digitiliti, Encompass Holdings, Bell Buckle Holdings, and Utilicraft Aerospace Industries – to take over from 2017 to 2019.
The indictment states that Miller and Jaberian, as well as an unidentified person related to Miller, actually became the nominal CEOs and presidents of the target companies.
The men are charged with using the Securities and Exchange Commission’s EDGAR public filing system and fake press releases to inflate these companies’ stock prices by claiming they had new business opportunities. According to the indictment, the companies actually had no significant business or income.
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According to a court filing, the men bought millions of shares in the companies, in many cases for far less than a cent a share, which were then sold over-the-counter for profits of up to 900%.
A spokeswoman for the U.S. Attorney’s Office in Minnesota, who refused to comment on Miller and Rajkaran’s scheduled hearings Tuesday, previously said the three men reportedly made hundreds of thousands of dollars from illegal profits.
Jaberian’s attorney said in a court case in late August that “in a future trial, Jaberian’s defense will require the allegation that Miller tricked him” into unwittingly participating in a plot to kidnap a dormant mailbox company.
The SEC separately sued Miller in June in a civil case in which he “falsely solicited a fraudulent scheme to target at least seven inactive penny stock companies [companies] with the intention of capitalizing on a ‘pump and dump’ of the stock. “
The inactive companies that Miller allegedly targeted in the SEC complaint included the four named in the indictment, as well as Strategic Asset Leasing, Simulated Environment Concepts and Bebida Beverage.
At the time of his indictment, Miller was involved in gaining control of a Florida penny stock company, New World Gold Corp., which is not cited as one of its alleged targets in either criminal or civil proceedings by the SEC.
Miller voluntarily dropped a lawsuit he filed as part of his efforts in Florida less than two weeks after CNBC reported its stake in New World Gold.
New World Gold’s share price climbed from a high of $ 0.0275 per share on June 3 – two weeks before news of Miller’s criminal case broke – to $ 0.0092 per share on Tuesday afternoon.
NWGC shares were down more than 47% in trading by late Tuesday, with more than 81 million shares changing hands.
The company’s alleged Twitter feed Tuesday afternoon announced that its references had been withdrawn by the OTC Markets Group, which organizes the listing of over-the-counter stocks on three marketplaces, based on “conflicting statements in the disclosure and filing documents” on New World Gold.
These materials “relate to the timing and validity of your appointment as Chief Executive Officer and Director of the Company,” OTC Markets wrote in an email to alleged New World Gold CEO Robert Honigford.
A message that CNBC New World Gold sent for a comment to the email address listed in a press release announcing the termination of its OTC Markets account was not immediately replied to.
The OTC Markets Group declined to comment on New World Gold, but confirmed the authenticity of the email quoted in the press release linked to the tweet.