Stock Fraud Ring, Securities Fraud, California 2020
Four members of a stock fraud ring, including a securities attorney, have been charged with securities fraud in a San Diego court.
According to court documents, the four defendants, Ongkaruck Sripetch, Michael Wexler, Ashmit Patel, and Andrew McAlpine, worked together to artificially inflate the prices of penny stocks, then quickly unload their own shares before the prices collapsed.
The indictment alleges that the defendants carried out pump-and-dump schemes on the stock of two companies: VMS Rehab Systems and Argus Worldwide.
The investigation that led to these charges involved a co-conspirator-turned-confidential-informant who was cooperating with the FBI.
Defendant McAlpine was arrested on Friday when he entered the United States from Grand Cayman, and defendant Sripetch was also arrested on Friday, in Gig Harbor, Washington.
The United States is seeking the arrest of defendants Patel and Wexler.
“These defendants sought to boost the stock price of two companies, and then leave innocent investors with investments that they knew would almost immediately lose most or all of their value,” said U.S. Attorney Robert Brewer.
The indictment alleges that the conspirators traded the stock of VMS Rehab and Argus Worldwide between themselves to create the appearance that investors were genuinely interested in and actively trading the stocks.
Defendants:
- Ongkaruck Sripetch, aka King Richards, aka Shelby Saint-Claire, age 45, Gig Harbor, WA
- Michael Wexler
- Ashmit Patel
- Andrew McAlpine
Criminal Charges: Securities Fraud
City and State: San Diego, California
Date: September 21, 2020
Sentence or Outcome: The case is ongoing.
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →