Vancouver businessman David Sidou faces new charges of fraud, this time allegedly as part of a multi-year “pumping and dumping” scheme that has raised more than $ 145 million in investors.
The allegations were revealed in a complaint by the US Securities and Exchange Commission (SEC), filed in the Southern District of New York on Thursday. Sidou and seven others were named.
The complaint describes a scheme that operated from 2006 to 2020.
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The SEC claims that the group acquired controlling stakes in companies, disguised its collective control of shares, funded misleading promotional campaigns to arouse interest among unsuspecting investors, and then unloaded its shares to cash in on the increased share price. .
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It is alleged that the group will split the profits while holding some of the money to fund its next pumping and disposal.
Ronald Bauer, a London-based recidivist, was the mastermind of the operation, the SEC said, leading the most productive of the three rounds involved in the scheme.
2:06 BC businessman David Sidou is out of jail and returns to Canada AD businessman David Sidou is out of jail and returns to Canada – December 17, 2020
Sidoo is collaborating with the ring on two pumping and disposal campaigns, the SEC said, involving shares in North American Oil & Gas Corp. and American Helium Inc.
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Sidoo used offshore “omnibus vehicles and front companies” to cover up the fact that it was a beneficiary of the share sales. He has failed to disclose his real property and register his share sales, as required by law, the SEC said.
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The ring uses financial services platforms in Switzerland to move shares. The SEC claims that Sidou and his accomplices illegally earned $ 15.23 million from the disposal of their North American oil reserves in 2013 and 2014 and another $ 1.45 million from the sale of US helium reserves in 2018-2020. d.
In its documentation, the SEC said Sidou, who worked as a stockbroker for eight years in the 1990s, was well aware of federal securities laws that the scheme violated.
02:00 BC businessman David Sidou received a 90-day prison sentence for a scandal for admission to an American college The businessman from BC David Sidou received a 90-day sentence for admission to an American college – July 15, 2020.
The SEC wants bans on stock trading against the accused, along with the return of “illegally earned” profits.
Sidou is not a criminal. Through his lawyer, he denied all allegations related to the SEC’s complaint. None of the allegations have been proven in court.
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Four of his alleged associates listed in the SEC document, including Bauer, a dual citizen of Canada and the United Kingdom, and two other Canadians, Craig Auringer and Curtis Lenner, are facing related charges of telegraphic and securities fraud, the ministry said. justice on thursday.
Three other Canadians, Dominique Calabrigo, Julius Churgo and Anthony Korculanik, are facing criminal charges in connection with the alleged scheme.
Sidou, a businessman, philanthropist and former CFL player, pleaded guilty to involvement in the high-profile US college college scandal in 2020 and was sentenced to 90 days in prison.
Prosecutors in the case allege that he paid to get someone to take SAT tests for his sons, and tried to pay for other tests in addition to them.
He was later stripped of the BC Order of Honor and his name removed from the UBC football field.
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