Penny Stock Pirates: Duo Nabbed in Multi-Million Dollar Fraud

LOS ANGELES, CA – The feds descended on Los Angeles this week, arresting Izak Sirk De Maison (aka Izak Zirk Engelbrecht, aka Zirk Engelbrecht), 58, and Stephen J. Wilshinsky, 59, on charges stemming from a brazen penny stock fraud scheme. The arrests, announced by the Department of Justice, U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach, and FBI Special Agent in Charge Stephen D. Anthony, reveal a calculated effort to fleece investors out of millions.

De Maison, brazenly self-described as a “merchant banker,” allegedly constructed a network of public “shell” companies – empty corporate vessels with no real business activity. He then merged emerging businesses into these shells, creating publicly traded companies on paper only. The real dirty work? Paying undisclosed kickbacks to brokers like Wilshinsky, who then used his clients’ funds to artificially inflate the price of the resulting penny stock. These companies, according to the complaint, typically had minimal revenue and zero profit, existing solely to line De Maison’s pockets.

The scheme wasn’t just about creating fake companies; it was about manipulating the market. Investigators allege De Maison and Wilshinsky colluded to guarantee buyers whenever De Maison wanted to dump his shares. Despite the typically low trading volume of these manipulated stocks, orders were filled “almost instantaneously” thanks to Wilshinsky and other brokers abusing their discretion over client accounts. The alleged payoff? A hefty fifty percent kickback from De Maison for every share purchased with client money – money investors were never told was being risked on worthless stock.

To maximize profits, De Maison didn’t just sell; he inflated. The complaint details a conspiracy to artificially drive up stock prices through false reporting and manipulative business practices, only to let them plummet once De Maison had cashed out. He allegedly used the same individuals repeatedly in these schemes, building a network of complicit players to facilitate the fraud. The investigation has already identified a number of victims in the Northern Ohio area, but authorities believe the scope of the damage extends far beyond.

“These two are nothing more than sophisticated thieves,” declared Anthony. “Putting a suit on and calling it investing does not make stealing acceptable. The FBI will continue to work with the SEC to make sure these two and their additional conspirators answer for this multi-million dollar fraud.” Dettelbach echoed the sentiment, stating, “The FBI and SEC continue to work tirelessly to investigate financial fraud. We will prosecute cases as they are brought to us to ensure faith in the markets and to seek justice for those who have been victimized.”

Both De Maison and Wilshinsky are charged with conspiracy to commit wire fraud and securities fraud. De Maison faces additional charges of wire fraud, securities fraud, money laundering, and use of interstate commerce for purpose of securities fraud. Authorities warn this is an ongoing investigation, with additional charges expected for both men, and further arrests anticipated. A complaint is only an accusation, and both defendants are presumed innocent until proven guilty in a court of law.