Securities Industry Commentator by Bill Singer Esq

June 18, 2018
A federal grand jury in the United States District Court for the Northern District of Californian indicted Theranos, Inc. founder  Elizabeth A. Holmes and former Director/President/Chief Operating Officer Ramesh "Sunny" Balwani each on two counts of conspiracy to commit wire fraud and nine counts of wire fraud. Theranos was purportedly a private health care and life sciences company seeking to revolutionize medical laboratory testing through innovative blood-drawing and blood testing. Holmes and Balwani allegedly engaged in a multi-million dollar scheme to defraud investors, and a separate scheme to defraud doctors and patients.  READ the FULL TEXT Indictment

Power Play Short Circuits Broker's Career ( Blog)
To be a grand thief is often the stuff of legend. We seem to idolize crooks who think big, even when they get caught. We quote Willie Sutton. Al Capone, Jordan Belfort, and Bernie Madoff are the subjects of books and movies. The petty thief, on the other hand, is often viewed with little more than scorn: as if the turnstile jumper and pickpocket should have aspired to more. Master thieves are champs. Petty thieves are chumps. You ask me, they're all losers but, then again, that's just me. In a recent FINRA regulatory settlement we got a stockbroker who threw it all away for a few hundred bucks. At some point in time, he said it was all a mistake. Yeah, sure -- that's an original explanation. Mistake or not, it all comes off as both sad and pathetic. 

Former Stockbroker Sentenced for Microcap Stock Manipulation Scheme (DOJ Press Release) 
According to federal prosecutors brothers,Jehu, Learned, and Adam Hand engaged in a pump-and-dump scheme involving the Crown Marketing microcap company, which purportedly owned a patented drug delivery technology. Jehu Hand incorporated Crown in 2010 and issued stock to front companies that he secretly controlled. In 2012, Jehu enlisted his brothers Adam and Learned, with Learned becoming Crown's Chief Executive Officer. Learned put out misleading press releases about Crown; and Adam traded and sold the company's. Federal prosecutors alleged that the brothers sold over 23 million shares of Crown stock, causing over $1.5 million in investors' losses.Adam Hand and Learned Hand pled guilty to Informations charging each with conspiracy to commit securities fraud. In May 2018, Jehu Hand was convicted after a 13-day trial of conspiracy, securities fraud and wire fraud. Adam Hand was sentenced in the United States District Court for the District of Massachusetts  to 30 months in prison and three years of supervised release.