“Pump and Dump” Stock Fraud Scheme Indictment

“Pump and Dump” Stock Fraud Scheme Indictment

A federal grand jury in Chicago has indicted a former executive of a Silicon Valley video streaming service. He is indicted for allegedly engaging in a “pump and dump” stock fraud scheme. The indicted David Foley served as a director of San Jose, Calif-based Nanotech Entertainment Inc. (“NTEK”). While serving as the director, he allegedly schemed with an investment manager to manipulate purchases and sales of shares in NanoTech Gaming Inc. (“NTGL”)

The “NTGL” is a Las Vegas Nev. based business that formerly operated as a division of NTEK. A ten-count indictment returned Jan. 11, 2021, in U.S. District in Chicago. The 55-year old Foley of Los Gatos, Calif., and 49-year old investment manager Bennie Blankenship of New Carlisle, Ohio are charged with wire fraud and securities fraud. Arraignments are scheduled for Jan. 19, 2021, at 10:00 a.m., before U.S. District Judge Steven C. Seeger.

John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI announced the indictment. Assistant U.S. Attorney Matthew Getter is representing the government. The indictment alleges that Foley acquired shares in NTGL and fraudulently caused them to be unrestricted.

The indictment states that Blankenship exaggerated the stock’s prospects for success, thus artificially inflated the prices. The indictment states that Foley schemed with others to sell the pumped-up stock to the investing public. The scheme lasted for three years from 2013 to 2016. The indictment states that during a portion of the time period, Foley was incarcerated in California on an unrelated criminal conviction.

Related Posts
Plazas planned for 10 Chicago neighborhoods
Supported with funding from the Chicago Recovery Plan, 10 new public plazas will create spaces
Buffalo Grove High School Student Killed in Shooting at Stoplight in Chicago
A 16-year-old boy and a 19 year-old male were stopped at a red light in
$21 million announced for infrastructure projects in Cahokia Heights
The city of Cahokia Heights will receive $21 million for infrastructure projects, Gov. JB Pritzker
City of Naperville Announces Jason Arres as Next Police Chief
The City of Naperville is pleased to announce that Jason Arres, who currently serves as
AFL-CIO Building Investment Trust hosts worker appreciation luncheon at Salesforce Tower project
The AFL-CIO Building Investment Trust (BIT) and the AFL-CIO Investment Trust Corporation (ITC) recently hosted a
Restore Illinois Plan. Northeast Region Weekly Update April 10, 2021
I hope this message finds you safe and well.  Starting on Monday, April 12th, the
Steel top 2021 biosteel all-american game roster with five selections
The Chicago Steel will be represented by five players, the most of any team in
Former Scott AFB Airman Sentenced to Prison For Distributing Child Pornography
East St. Louis, Ill. – Jace Faugno, 25, of Paducah, Kentucky, has been sentenced to
Data Centers Recieve Credits & Incentives from Illinois
The data centers investment program provides owners and operators with exemptions from a variety of
Illinois Set to Enact New Law Limiting Criminal Convictions in Employment Decisions
Illinois has long limited employers from considering the criminal history of an applicant or employee