Cocoapuff
10 months ago
Does this mean the people that was done wrong will get some of their money back.
With respect to financial remedies, Moynes was ordered to pay disgorgement of $1,042,407, prejudgment interest of $253,868, and a civil penalty of $207,183. Digatrade was ordered to pay disgorgement of $510,000 and prejudgment interest of $133,309 and a civil penalty of $100,000. $62,007 of Digatrade's disgorgement is joint and several with Moynes. The SEC's complaint also named Vancap Ventures, Inc., a company owned by Moynes and that received trading proceeds from Moynes' fraudulent schemes, as a relief defendant. Vancap was ordered to pay disgorgement of $980,400 and prejudgment interest of $235,577 on a joint and several basis with Moynes.
lucky, mydog
1 year ago
Example 2: Digatrade Financial Corp.
41. During the Relevant Period, Bradley J. Moynes4 was the Chief Executive Officer
and Chairman of Digatrade Financial Corp. (OTC: DIGAF) (“Digatrade”), a publicly traded
company based in Vancouver, British Columbia, Canada.
42. Between about September 2014 and April 2016, Moynes engaged in a fraudulent
scheme to sell Digatrade securities into the public markets while concealing his control of those
shares through nominee companies. Moynes’ scheme used the services of Frederick Sharp and
his employees to sell his Digatrade shares illegally.5
Carrillo became involved in Moynes’
scheme in mid-2016. In July and August 2016, Moynes took steps to re-establish his control
over the public float of Digatrade by decreasing the number of Digatrade’s shares and then
causing Digatrade to issue new, and purportedly unrestricted, shares to nominee entities that
Moynes and Carrillo could control.
43. By the end of 2016, Moynes, Carrillo and their associates (the “Digatrade Control
Group”) controlled approximately 97% of Digatrade’s public float and Moynes also controlled a
significant block of Digatrade’s restricted shares. The Digatrade Control Group owned their
shares of the public float through various overseas brokerage accounts they controlled through
their associates. The Digatrade Control Group then began to promote and sell the Digatrade
4
The Commission charged and obtained judgments against Moynes and Digatrade in a separate case
alleging that they engaged in a deceptive scheme to hide their sales of Digatrade stock to unsuspecting
retail investors. Without admitting or denying the allegations of the Commission's complaint, Moynes
and Digatrade consented to the entry of final judgments enjoining them from violating the securities laws.
The final judgments also imposed penny stock bars against Moynes and Digatrade and imposed an officer
and director bar, disgorgement, and a civil penalty against Moynes. See SEC v. Moynes, et al., No. 1:22-
cv-11006 (D. Mass. judgments entered Mar. 8, 2023).
5 Sharp and his associates are defendants in a Commission action alleging that they facilitated unlawful
stock sales to retail investors for many different Control Persons. See SEC v. Sharp et al., No. 1:21-cv11276 (D. Mass. Filed Aug. 5, 2021).
Case 1:23-cv-11598 Document 1 Filed 07/17/23 Page 12 of 25
13
shares they controlled.
44. Carrillo hired the Medellin Room to solicit investors in a promotional campaign
that started on November 1, 2016. In the two months prior to the promotion, trading in
Digatrade was sparse. However, in the first two days of the Digatrade promotion, the price and
volume of Digatrade soared.
45. In particular, over two days, November 1 and 2, 2016, brokerage accounts
controlled by the Digatrade Control Group sold approximately 4.5 million shares of Digatrade
(over 50% of the company’s public float), generating approximately $2.3 million in trading
proceeds. Despite that heavy selling, Digatrade’s stock price rose from a closing price of $0.13
per share on October 31, 2016 to a closing price of $0.59 per share on November 1, and peaked
at $0.96 per share on November 14, 2016, as reflected in the chart below.
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
$-
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
3-Oct-16 3-Nov-16 3-Dec-16 3-Jan-17 3-Feb-17 3-Mar-17 3-Apr-17 3-May-17
Digatrade Financial Corp (DIGAF) - Price and Volume
Volume Close
Case 1:23-cv-11598 Document 1 Filed 07/17/23 Page 13 of 25
14
46. Through his firm’s proprietary trading account, Anglim initiated quoting on
Digatrade on the first day of the Digatrade Control Group’s promotion. Trading records show
that Anglim’s firm was leading the bid price increases for Digatrade shares that day. In other
words, Anglim offered to buy Digatrade shares in the market at increasing prices throughout the
day on November 1, 2016.
47. Over 8.2 million shares of Digatrade traded in the market during November 1-2,
2016 compared to less than 32,000 shares for the whole month of October. Over those two days,
the Digatrade Control Group sold approximately 4.5 million shares of Digatrade and Anglim
facilitated their liquidation by buying and selling approximately 3 million shares of Digatrade
using his firm’s market maker trading account.
48. From November 1, 2016 through May 1, 2017, the period in which Anglim was
trading in Digatrade using his firm’s market maker trading account, the Digatrade Control Group
sold approximately 12.3 million shares of Digatrade for approximately $3.4 million in proceeds.
49. Anglim’s firm’s market maker trading account bought and sold approximately
11.2 million shares of Digatrade between November 2016 and May 2017 and the firm’s net
trading profit totaled $123,862, of which $61,931 was paid to Anglim in commissions.
50. Anglim also traded in Digatrade in his personal brokerage account. On or about
December 6, 2016, after the initial promotion, Digatrade’s price dropped to a low of $0.28 a
share. That day, Anglim bought on the dip in price by purchasing 98,000 shares of Digatrade at
an average price of $0.29 per share in his personal brokerage account.
51. On the same day, December 6, 2016, Anglim continued to trade Digatrade for the
Digatrade Control Group by buying 403,714 shares and selling 392,850 shares in his firm’s
proprietary trading account. By the end of that day, the price had increased and Anglim switched
Case 1:23-cv-11598 Document 1 Filed 07/17/23 Page 14 of 25
15
to selling Digatrade shares in his personal brokerage account. That day, he sold 22,600
Digatrade shares at an average price of $0.37 per share, resulting in a single day gain of 29% per
share.
52. The total trading volume for Digatrade on December 6 amounted to 1,364,894
total shares, of which Anglim’s market making and personal trading accounted for 917,164
shares, or approximately 67% of total volume. Digatrade shares closed at $0.40 on December 6,
2016, up 25% from the prior day’s close.
53. In his personal brokerage account, Anglim sold most of the rest of his shares of
Digatrade over the next week and by the end of December 2016, Anglim had made a total profit
of $14,222 on his initial $28,473 purchase of Digatrade shares. Anglim’s Digatrade
commissions and personal trading profits thus totaled $76,153.
https://www.sec.gov/litigation/complaints/2023/comp25780.pdf
Hummingbird2
2 years ago
OTC Markets Group designates certain securities as 'Caveat Emptor' and places a skull and crossbones icon next to the stock symbol to inform investors that there may be reason to exercise additional care and perform thorough due diligence before making an investment decision in that security. Quotations will not be displayed for Caveat Emptor securities in the Pink Limited or Expert Market tiers.
The Caveat Emptor Designation may be assigned when OTC Markets becomes aware of one or more of the following:
Promotion — The security is the subject of stock promotion that may be misleading or manipulative. Promotional activities may include news releases, spam email, and newsletters, whether they are published by the issuer or a third party. See OTC Markets Group's Policy on Stock Promotion.
Investigation of Fraud or Other Criminal Activities — There is an investigation or other indication of fraudulent or other criminal activity involving the company, its securities or insiders.
Suspension/Halt — A regulatory authority or an exchange has halted or suspended trading for public interest concerns (i.e. not a news or earnings halt).
Undisclosed Corporate Actions — The security or company is the subject of a corporate action, such as a reverse merger, stock split, or name change, without adequate current information being publicly available.
Other Public Interest Concern — OTC Markets Group may determine that there is a public interest concern regarding the security. Such concerns may include but are not limited to promotion, spam or disruptive corporate actions even when adequate current information is available.
When Does Caveat Emptor Get Removed?
OTC Markets Group may review a Caveat Emptor designation upon request by the company and may determine, in its sole discretion, to remove the designation. The Caveat Emptor designation is typically not removed within the first 30 days of designation. To be eligible for a review, a company must meet the qualifications for Pink Current Information, have a verified the information on its company profile on www.otcmarkets.com, and demonstrate to OTC Markets Group that there is no longer a public interest concern. OTC Markets Group requires Caveat Emptor securities that are not eligible for proprietary broker quotations (Unsolicited Only) to have a Form 211 cleared by FINRA in order to be eligible for a review (e.g. securities previously halted or trade suspended by a regulatory authority).
https://www.otcmarkets.com/learn/caveat-emptor
Caveat Emptor status likely will not be removed anytime soon.
Hummingbird2
2 years ago
DIGAF SECURITY DETAILS
Share Structure
Market Cap Market Cap
170,897
12/02/2022
Authorized Shares
Unlimited
11/09/2022
Outstanding Shares
1,708,969,288
11/09/2022
Restricted
10,673,449
11/09/2022
Unrestricted
1,698,295,839
11/09/2022
Held at DTC
1,698,228,377
11/09/2022
Float
368,513,533
11/05/2019
Par Value
No Par Value
https://www.otcmarkets.com/stock/DIGAF/security
Any udpates? Pls share. Thanks.
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