Florida Man ‘Pump and Dump’ Scheme Lands Him in Court

NEW HAVEN, CT – Damian Delgado, 44, of Orlando, Florida, also known as “Michael Neumann,” has confessed to masterminding a multi-million dollar stock “pump and dump” scheme that preyed on unsuspecting investors. Delgado pleaded guilty today in U.S. District Court in New Haven to conspiracy and tax offenses, facing up to 25 years behind bars.

Between 2009 and 2016, Delgado worked with co-conspirators Christian Meissenn and William Lieberman to manipulate the stock prices of several shell companies, including Terra Energy Resources Ltd. (TRRE), Mammoth Energy Group, Inc. (MMTE/LEAS), Trilliant Exploration Corporation (TTXP), Hermes Jets, Inc. (HRMJ/CBBB), Dolat Ventures, Inc. (DOLV), and Fox Petroleum, Inc. (FXPT). They flooded the market with false and misleading information through calls, emails, and press releases, artificially inflating the stock values.

Delgado, a barred penny stock promoter with prior felony convictions, operated under pseudonyms to conceal his background. He personally raked in $346,652.18 from the scheme – a full 25 percent of the funds he convinced others to invest. Once the stock prices peaked, Delgado and his crew cashed out, leaving investors holding worthless shares and suffering millions in losses. The scheme relied on the companies having “virtually no legitimate business activities” and being controlled by Lieberman and others.

But the greed didn’t stop there. Delgado attempted to hide his ill-gotten gains by funneling the money through trust accounts belonging to Connecticut attorney Corey Brinson, and into accounts held by his wife, stepdaughter, and various shell entities. This elaborate scheme to evade taxes cost the Internal Revenue Service $54,080. He will be ordered to pay restitution to victims and back taxes at sentencing.

Delgado faces a maximum sentence of 20 years for conspiracy to commit mail and wire fraud and an additional five years for tax evasion. His sentencing is scheduled for August 30, 2017. This isn’t a standalone case. Meissenn, of Suffield, Conn., and Lieberman, of Boca Raton, Fla., have already pleaded guilty to similar charges and await sentencing. Brinson, of Hartford, received a 36-month prison sentence earlier this year for his role in laundering the illicit funds.

The investigation, conducted by the FBI, IRS – Criminal Investigation Division, and U.S. Postal Inspection Service, with support from the Connecticut Department of Banking and Hartford Police, underscores the relentless pursuit of those who exploit the financial markets for personal gain. Grimy Times will continue to follow this case and report on the sentencing of all involved parties.