San Diego attorney Andrew Coldicutt was found guilty by a federal jury on all 17 counts related to securities fraud, false securities registration statements, and wire fraud. The conviction follows a weeklong trial where the jury deliberated for less than four hours.
Coldicutt was implicated in two pump-and-dump market-manipulation schemes from 2017 through 2019. In these schemes, he collaborated with undercover FBI agents posing as clients to create companies, take them public, release misleading information, manipulate stock prices for profit, and conceal their involvement.
In the first scheme, Coldicutt devised a plan for a fictitious backyard fruit harvesting company. He filed false securities registration statements with the U.S. Securities and Exchange Commission for an initial public offering of this company's stock. These documents contained inaccurate details about the company's operations and ownership.
The second scheme involved another client in 2019 who needed quick capital. Instead of legal fundraising methods, Coldicutt proposed another pump-and-dump strategy to the undercover agents. He provided a false attorney opinion letter to facilitate stock sales under this fraudulent plan.
During the trial, evidence included recordings of Coldicutt discussing the business plan with undercover agents and accepting $2,500 in cash as an advance for executing the scheme. Encrypted messages showed his coordination efforts with a cooperating source. Although no investors were harmed due to the involvement of undercover agents gathering evidence against him, potential profits from one scheme were estimated at $4.85 million with Coldicutt's share projected at $240,000.
A "pump and dump" is defined as fraud involving manipulation of stock prices through misinformation or deceptive trading practices to artificially inflate prices before selling shares at a profit.
Acting U.S. Attorney Andrew R. Haden emphasized the importance of trust in securities professionals: “When these individuals misuse their legal credentials to commit fraud, it is innocent investors who often bear the brunt of the harm." He credited FBI investigators and prosecutors for exposing wrongdoing without investor losses.
FBI San Diego Special Agent in Charge Stacey Moy stated: “Andrew Coldicutt engaged in a deliberate, unlawful and years long securities fraud scheme.” She noted that attorneys are held to high standards and that those abusing authority will be held accountable by law enforcement agencies like the FBI.
Coldicutt is set for sentencing on July 11, 2025, before U.S. District Judge Jinsook Ohta. The Securities and Exchange Commission has also initiated civil proceedings against him.
The charges include violations under Title 15 concerning securities fraud and false registration statements along with Title 18 regarding wire fraud—all carrying maximum penalties of twenty years imprisonment each.
The Federal Bureau of Investigation conducted this investigation.
