Olympia – The Department of Financial Institutions (DFI) Director Scott Jarvis announced that eight defendants were charged with participating in a “pump and dump” securities fraud scheme Dec. 4, 2007 in Seattle Federal District Court. As part of the scheme, the defendants are alleged to have secretly acquired publicly traded companies (which were all incorporated in Washington), sent out “junk faxes” and press releases, and sold stock through nominee brokerage accounts in the U.S., Canada, and the Turks and Caicos Islands.
One of the named defendants is Beverlee Kamerling, a Bellevue, Washington resident, who is alleged to be one of the leaders of the scheme. Last week, Bellevue attorney Tolan S. Furusho pleaded guilty to charges of Conspiracy to Commit Securities Fraud for his participation in the scheme.
“This indictment sends an important message to the investment community,” DFI Securities Division’s Director Michael Stevenson said, “that law enforcement is dedicated to preserving the integrity of the marketplace.”
DFI’s Securities Division staff worked with the U.S. Attorney’s Office and the U.S. Postal Inspection Service in the investigation and preparation of the indictment. Securities Division staff attorney Robert Kondrat was appointed a Special Assistant U.S. Attorney and is prosecuting the case with Assistant United States Attorney Jim Lord. Other agencies who assisted with the investigation were the Securities & Exchange Commission (SEC), the Integrated Market Enforcement Team (IMET) of the Royal Canadian Mounted Police, and the Financial Industry Regulatory Authority (FINRA) Criminal Prosecution Assistance Group.
Additional information about the indictment may be found at www.usdoj.gov/usao/waw/press/2007/dec/kamerling.html.