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BC ‘mastermind’ in $1.3 billion stock fraud challenges US SEC allegations

West Vancouver resident Frederick L. Sharp argues that the lawsuit filed by the US Securities and Exchange Commission should be dismissed and that he should not be forced to list his assets.

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A $1.3 billion international stock fraud mastermind is fighting back against the US Securities and Exchange Commission’s efforts to freeze BC assets.

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He argues that the evidence presented to the court by US agencies here is inadmissible.

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West Vancouver resident Frederick L. Sharp argues that the BC Supreme Court action filed by the SEC should be dismissed and that no asset listing is required.

“(SEC) has already obtained an order to freeze and repatriate these assets to the United States. , is an abuse of the process,” Sharp said in response to the American security regulator’s filing.

Sharp is one of seven BC residents the SEC has sought to freeze homes, vehicles and other assets allegedly linked to a $1.3 billion international stock fraud. According to court filings, BC’s known property is valued at approximately $10 million.

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Seven British Columbians have been charged with violating the anti-fraud, registration and reporting provisions of the U.S. securities laws in a civil lawsuit pending before the U.S. District Court in Massachusetts.

The SEC outlines that the US lawsuit seeks the return of “unjustly gained profits” and fines.

Sharp, 69, who the SEC claims was the “mastermind” of the scheme, had a default judgment against him in the United States earlier this year, but he has not responded to the allegations. Other British Columbians, who are fighting charges in the United States, have yet to respond to a freeze request in B.C.

In its response to the BC Supreme Court, Sharp does not acknowledge that the default judgment in the United States is final.

But Sharp also said BC had no evidence that there were assets that could be seized legally.

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In the BC Supreme Court’s arguments, the SEC alleges that there are strong cases in which defendants committed, participated in, and/or profited from fraud.

“Defendants each have assets in British Columbia and there is a real risk that some or all of them will dissipate those assets,” the SEC alleges.

In the US, the SEC has already obtained global freeze orders against bank and investment accounts.

The SEC alleges Sharp and others engaged in a pump-and-dump stock scam in which the identities of penny stock owners were hidden.

In another case in the BC Supreme Court, the SEC is seeking to enforce a $37 million order in Canada against Sharp to repay illegal gains.

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A U.S. default judgment against Sharp resulted in fines and orders to repay illegal gains totaling $68 million. His $37 million that the SEC is seeking is part of the illegitimate profits of the judgment and accrued interest.

The SEC is seeking summary judgment without trial, arguing that Sharp has no case to defend.

Sharpe was fighting the BC lawsuit, in which he was denied “procedural impartiality”, was not properly informed of US court proceedings, and the US court case had jurisdiction over him. I claim not.



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BC ‘mastermind’ in $1.3 billion stock fraud challenges US SEC allegations

Source link BC ‘mastermind’ in $1.3 billion stock fraud challenges US SEC allegations

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