Halford W. Johnson, Securities Fraud, New York 2023
BUFFALO, N.Y.-A Brockport man has pleaded guilty to his role in a multi-million dollar investment scam. Halford W. Johnson, 60, of Brockport, NY, pleaded guilty to conspiracy to commit securities fraud before U.S. District Judge Lawrence J. Vilardo.
The charge carries a maximum penalty of five years in prison.
Between September 2013, and April 2018, Johnson conspired with co-defendant Darin R. Pastor to defraud multiple investors through a publicly traded company named Creative App Solutions, Inc., whose stock was registered with the United States Securities and Exchange Commission.
On September 6, 2013, Pastor paid approximately $1,774.10 to purchase approximately 3,548,200 shares of Creative App Solutions’ stock. Pastor became the CEO and changed the company’s name to Capstone Financial Group, Inc. Johnson was appointed Chief Financial Officer of Capstone.
Johnson and Pastor fraudulently represented to investors and potential investors that Pastor had substantial personal wealth. For instance, they created a Wikipedia page for Pastor claiming that he had a net worth of hundreds of millions of dollars. They also misled investors and potential investors to believe that their money would be used by Capstone to fund business deals that would generate substantial profits and increase the value of Capstone stock.
Between September 2013, through March 2017, approximately 95 investors purchased Capstone stock for $19,807,303.
Defendant Johnson's sentencing is scheduled for April 2, 2024, before Judge Vilardo.
The total loss to investors is $19,807,303. The plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso, and the Federal bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
Defendant Pastor, who was also charged, died in March 2023.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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