Related Federal Cases
Florida Man Pleads Guilty to Securities Fraud in CT
William Lieberman, a 41-year-old resident of Boca Raton, Florida, has pleaded guilty to conspiracy and tax offenses stemming from his role in a securities fraud scheme, according to the U.S. Attorney’s Office for the District of Connecticut.
Lieberman waived his right to be indicted and pleaded guilty before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy to commit mail and wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of tax evasion, which carries a maximum term of imprisonment of five years.
Between approximately 2010 and July 2016, Lieberman conspired with others, including Christian Meissenn of Connecticut, to defraud investors through a stock ‘pump and dump’ scheme. They induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated.
The issuing companies included Terra Energy Resources Ltd. (stock symbol ‘TRRE’); Mammoth Energy Group, Inc. (stock symbol ‘MMTE’), a company that later became Strategic Asset Leasing Inc. (stock symbol ‘LEAS’); Trilliant Exploration Corporation (stock symbol ‘TTXP’); Hermes Jets, Inc. (stock symbol ‘HRMJ’), which later became Continental Beverage Brands Corporation (stock symbol ‘CBBB’); Dolat Ventures, Inc. (stock symbol ‘DOLV’), and Fox Petroleum, Inc. (stock symbol ‘FXPT’).
Lieberman served as the Chief Executive Officer, Chairman of the Board, President, Secretary, and Treasurer of Mammoth Energy Group, Inc.; the President, Chief Executive officer, and Chairman of the Board of Strategic Asset Leasing Inc.; the President, Chief Accounting Officer, Chief Executive Officer, Chief Financial Officer, Secretary, and Treasurer of Fox Petroleum, Inc.; and the Chief Executive Officer, President, Treasurer, Secretary, and Chief Financial Officer of Trilliant Exploration Corporation.
As part of the scheme, Lieberman arranged for attorneys, including Corey Brinson of Connecticut, to sign false and misleading opinion letters that were designed to provide assurances to securities transfer agents and prospective investors. He also conducted matched or coordinated trades of securities amongst himself or in large blocks at predetermined prices, in order to artificially boost the trading volume of the securities, create the appearance of liquidity, and falsely drive up the share price.
After selling their own shares at a profit, the conspirators allowed the price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, victim investors lost at least $3.5 million. Lieberman earned nearly $1.2 million through this scheme, but failed to report this income to the Internal Revenue Service, evading $436,235 in federal income taxes for the 2011 through 2015 tax years.
Lieberman will be ordered to pay restitution to his victims, as well as back taxes, interest and penalties to the Internal Revenue Service. A sentencing date has not been scheduled yet.
Key Facts
- State: Connecticut
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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