Two people have been sentenced by a federal judge for their part in a “pump-and-dump” securities fraud scheme.
According to a May 12 Department of Justice news release, Gannon Giguiere and Oliver Lindsay were sentenced May 12 for their part in a scheme to manipulate the stock of Kelvin Medical Inc. for their own gain. Lindsay, who was living in the Cayman Islands, was sentenced to 17 months in prison, and Giguiere, of Laguna Beach, Calif., was sentenced to one year.
“The FBI is committed to investigating those who prey on unsuspecting investors for their own financial gain,” FBI Special Agent in Charge Stacey Moy said in the release. “These defendants will now face the consequences for their coordinated investment fraud scheme.”
Giguiere pleaded guilty in 2019 and admitted to manipulating the stock of Kelvin Medical, a small medical device company, the release reported. Giguiere conspired to drive up the price and volume of the stock through manipulative trading and promotion to convince investors to help inflate the price. After stock prices rose, Giguiere then dumped the stock and pocketed more than $1.4 million in fraudulent proceeds.
Lindsay also pleaded guilty in 2019 for his part in manipulating the stock prices of Kelvin Medical. U.S.District Judge William Q. Hayes ordered the defendants to pay restitution to the victims in the amount of $187,893.43, according to the release.
“These are fitting sentences for defendants who caused significant harm to investors,” said U.S. Attorney Randy Grossman in the release. “I trust that this will deter others who would participate in schemes that harm the integrity of the United States financial markets.”
