Eight indicted in securities-fraud scheme
A Seattle grand jury has indicted eight people in Washington, Florida and Utah after an investigation into an alleged "pump and dump" securities-fraud...
Seattle Times staff reporter
A Seattle grand jury has indicted eight people in Washington, Florida and Utah after an investigation into an alleged "pump and dump" securities-fraud scheme that involved buying a public company, falsely inflating its worth and then dumping the stock through brokerages in the U.S and Canada, and the Turk and Caicos Islands.
Arrested this morning in Bellevue by federal agents were 63-year-old Beverlee Kamerling and her son, Nicholas Alexander, 22. Alexander, who served as an officer or executive in the companies, is accused of shredding documents in Boca Raton, Fla., and attempting to confound the FBI's investigation by using throwaway telephones after he learned of the investigation, according to the U.S. Attorney's Office.
Kamerling and Alexander are expected to appear before a magistrate this afternoon.
Kamerling's alleged role in the scheme came out last week when Tolan Furusho, a Bellevue attorney and former registered agent for at least one of the companies, pleaded guilty to conspiracy and tax-evasion charges. Furusho is cooperating with the investigation and told the court that he helped Kamerling sell unregistered stock in the American Asia Energy Corp., which is headquartered in Salt Lake City.
According to the 21-count indictment, Kamerling was barred in 1999 from serving as an officer or director of a public company and, in 2000, was ordered by the court to repay $1.5 million to investors in another stock-fraud scheme. The charges allege she got around the ban by installing her son, mother and boyfriend as officers in several companies. The alleged frauds involved those Washington corporations — Detex Security Systems, Coattec Industries, America Asia and Global Gaming Network.
Prosecutors are seeking forfeiture of about $1.2 million illegally obtained through the scheme. Prosecutors also allege that Kamerling failed to pay taxes on nearly $850,000 in 2004 and 2005. Some of that money was derived from the securities scheme, according to Assistant U.S. Attorney Jim Lord.
The eight are charged with a variety of crimes, including conspiracy, mail fraud, securities fraud and international money laundering.
Kamerling; Alexander; Joel Ramsden, 32, of Delray Beach, Fla.; John Johansen, 37, of Plantation, Fla.; and John Worthen, 66, of Salt Lake City are charged with conspiracy to obstruct justice and making false statements. Donald Goldstein, 65, of Highland Beach, Fla.; his son, 35-year-old Jamie Goldstein, of Boca Raton., Fla.; and Seth Quinto, 36, of Miami, are charged with conspiracy to commit perjury for lying to the grand jury.
Securities fraud and mail fraud carry maximum penalties of up to 20 years in federal prison and fines of up to $250,000.
Mike Carter: 206-464-3706 or firstname.lastname@example.org
Copyright © 2007 The Seattle Times Company
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