Man charged with $78 million pump-and-dump scheme files petition in court

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A British businessman accused of a $78 million pump-and-dump scheme has taken the BC Law Institute to court to recover more than $3.5 million he paid to the trust fund of a former BC lawyer who has been cited as an expert. I am bringing it in. Cheating.

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In November 2015, the U.S. Securities and Exchange Commission approved a scheme involving shares in Jammin Jabba, which operated as Marley Coffee and sold coffee products using the late reggae artist Bob Marley’s trademark. A complaint was filed against several of the alleged perpetrators.

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One of the alleged architects of the plan was Kevin Miller, 46, a British businessman from St. Brelade, Jersey.

The commission alleges that the perpetrators made millions of dollars in illicit profits at the expense of investors and sought to cover up their wrongdoing through a complex offshore network.

A pump-and-dump scheme is when a promoter tries to boost the stock price with false or misleading statements about the company. After the stock price goes up, the scammers try to sell their shares for a profit and dump the shares on the market. After the stock is dumped, the price usually falls and the investor loses money.

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In October 2017, the SEC announced that it had awarded a US$58 million judgment against Wayne Weaver, who was indicted in this scheme. The judgment also ordered large payments to others, including Miller, who agreed to refund US$738,369 and his US$116,631 pre-judgment interest.

Miller entered into a settlement agreement without admitting or denying the SEC’s allegations.

He has now filed a petition with the BC Supreme Court, in which he claims he is entitled to US$2,974,399 and C$583,114 held in Ronald Norman Peltier’s legal practice trust account. I’m here. The legal community administers these trust accounts.

In April 2018, the Bar Association applied for and obtained an order barring Peltier from operating trust accounts until he is indicted for alleged professional misconduct. The citation alleges that between September 2014 and May 2018, he engaged in activities that facilitated or facilitated fraud, crime, or fraud.

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Peltier had knowledge of a securities fraud investigation by the SEC and entered into a company trust account to receive or pay approximately CDN$24,092,710 and US$5,360,839 in whole or in part on behalf of one or more clients. was accused of using or allowing the use of

A former member of the legal community in 2018, Mr. Pelletier, who was inactive in 2018, held a disciplinary hearing in a court of the legal community earlier this year. A decision on this issue is pending.

In the petition, Miller claims he is entitled to a refund of money he says he paid to Pelletier’s trust fund for a settlement agreement ultimately reached between the legal services and the SEC. .

“The SEC’s allegations against Mr. Miller have been fully resolved,” the petition states. “There is no legal reason for (the legal community) to continue to withhold Mr. Miller’s trust fund.”

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Miller claimed several attempts to get his money back had been in vain, and was told by an attorney at the Law Society that the BC Attorneys Regulator had applied to the courts to address the matter. He said no such application has yet been filed.

No response has been filed to the petition containing allegations that have not been tested in court. The legal academy did not respond to a request for comment.

The Toronto law firm representing Miller said in an email that it declined to comment because the matter is in court.

kfraser@postmedia.com

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