A Canadian citizen has been slapped with a 46-month prison sentence for his role in a pump and dump securities fraud scheme that bilked innocent investors out of their hard-earned cash.
Andrew Hackett, 33, of Toronto, Canada, was found guilty of securities fraud and conspiracy in August 2021. Hackett led the scheme, which involved manipulating the market for Arias Intel Corp stock.
According to evidence presented at trial, Hackett and his co-conspirators controlled the majority of Arias Intel’s free-trading shares through concealed offshore and nominee accounts, coordinated press releases with penny stock newsletters, and used high-pressure call rooms to target innocent investors.
Hackett and his co-conspirators also engaged in manipulative trading to create the appearance that Arias Intel stock traded at higher prices and with greater volume than was actually the case.
In handing down the sentence, U.S. District Judge Todd W. Robinson noted that Hackett played a central role in organizing the conspirators’ pump and dump efforts.
The court also scheduled a hearing on August 12, 2022, to determine the amount of restitution Hackett should pay to victims of his crime.
“The U.S. securities markets should operate on a level playing field,” said U.S. Attorney Randy S. Grossman. “We will continue to hold those who would illegally manipulate the markets, and try to tip the scales unfairly in their favor, to account.”
Three other defendants were charged alongside Hackett and pleaded guilty, including Kuldeep Sidhu of Vancouver, British Columbia; Annetta Budhu of New York, New York; and Kevin Gillespie of Tampa, Florida.
Hackett’s sentence is a testament to the FBI’s commitment to preserving the integrity of our financial markets and rooting out those who attempt to manipulate them through fraudulent means.
DEFENDANTS:
Andrew Hackett, Age 33, Toronto, Canada
Kuldeep Sidhu, Age 51, British Columbia, Canada
Annetta Budhu, Age 57, New York, NY
Kevin Gillespie, Age 53, Tampa, Florida
SUMMARY OF CHARGES:
Conspiracy – Title 18, U.S.C., Section 371
Securities Fraud – Title 15 U.S.C., Sections 78j(b), 78ff; and 17 C.F.R., Section 240.10b-5
AGENCY:
FBI (lead agency)
Securities and Exchange Commission
Criminal Prosecution Assistance Group, Financial Industry Regulatory Authority
Related Federal Cases
- Andrew Hackett, Securities Fraud, California 2023 · New York
- Songkram Roy Sahachaisere, Pump-and-Dump Scheme, California 2024 · New York
- California Woman Sentenced for Bank Fraud and Identity Theft · New York
- David Carmona, Digital Asset Fraud, California 2023 · Connecticut
- Roydel Nicholson, Mail Fraud and Money Laundering, NY 2023 · Connecticut
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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