loaded man in securities fraud related to the Florida shell company

The seal of the US Securities and Exchange Commission freezes on the wall at the headquarters of the SEC in Washington.

Jonathan Ernst | Reuters

A man from Minnesota indicted this month with securities fraud in a scheme to hijack dormant shell companies also it may have recently taken over of a Florida penny stock company, or at least tried, court documents suggest.

Federal prosecutors and the Securities and Exchange Commission in separate criminal is civil actions filed in The Minnesota federal court is indicting Mark Miller this month of using bogus documents to take over shell companies inactive and falsely inflate their share prices before selling millions of shares for profit.

Miller, a 43-year-old general contracting party, is a resident of Breezy Point, Minnesota, where he had been a Republican member of city council until discharge days after his indictment.

Second prosecutors, Miller, his criminal co-defendant Saied Jaberian and an unidentified relative of Miller in actually became the nominal CEO and president of targeted companies in the alleged scam.

Civil court records filed in Florida starting in February show a man from Minnesota with same name, Mark Miller, boyfriend in efforts to take over another sleeper convenience company, New World Gold Corp.

New World Gold, which it claims to be in the business of mining of gold ore is not one of seven companies identified as targets of The alleged Miller scheme in the federal criminal case o in the civil lawsuit SEC, which are pending in Federal court of Minnesota.

But the Florida court papers, press releases and . social media activities surrounding the New World Gold mirror allegations against Miller and his two co-defendants in the “pump and dump” scheme described in federal court of Minnesota prosecutors and securities regulators.

New World Gold shares are increased in both price is trading volume in the past several months since a man named Mark Miller filed the shares in Florida court trying to control the company.

One day after CNBC broke the news of the criminal accusation against Miller on June 18, New World Gold released a statement on Twitter states that “Mark Miller” is not affiliated with with the company.

New World Gold did not say that the “Mark Miller” who he was connected to that company in court papers is a Mark Miller other than the one who was indicted in Minnesota.

A number of people who follow the company on the stock discussion forums pointed to out that the company also he did not explain why he would have denied a connection to Mark Miller if that person were not the individual convicted in Minnesota.

Robert Lengeling, Miller’s criminal defense lawyer in Minnesota, declined for comment, and his client did not respond to CNBC inquiries for comment.

“Pump and discharge”

Federal prosecutors in Minnesota says Miller targeted at least four shell companies in the scheme that is the subject of the accusation against him and his co-defendants in the criminal case, Jaberian and Christopher James Rajkaran.

That indictment said that men presumably used false letters of resignation from officials of companies to take control of dormant companies.

They then issued false or misleading statements via press releases e social media, as well as EDGAR. of the SEC public storage area system, to affirm that the companies were attractive new business opportunity, according to the allegations.

Miller and his alleged accomplices bought millions of shares of these companies often for less than a penny, then I sold them shares after pumping up the escort price with their fraudulent claims, the prosecution said.

Prosecutors believe Miller and his associates made hundreds of thousands of dollars in illegal profits from the alleged scheme, a spokesperson for the United States Attorney’s Office in Minnesota told CNBC.

The companies have been identified in prosecution as Digitiliti, Encompass Holdings, Bell Buckle Holdings and Utilicraft Aerospace Industries.

The SEC, in his civil case was filed on June 18 against Miller alone, identified three other penny stock companies also believed to be similarly targeted by Miller, in addition to the four identified four in the criminal Pencil case. These three companies are Bebida Beverage Company, Simulated Environment Concepts and Strategic Asset Leasing.

Miller and the gold of the new world

All seven companies, like New World Gold, had been inactive before Miller got involved with them, court documents say.

The Florida Division of corporations database indicated that New World Gold was reinstated on that database on June 4, after being dormant for more five years.

The company shares trade publicly on the over-the meter market. New World Gold is listed by OTC Markets Group on its “Rosa” platform, with a “No information” warning. The “company may not do” material information publicly available, “that warning says.

The business has no record of any SEC filings, which includes a company’s quarterly and annual data financial statements, changes in management positions and other documents typically used by professionals and investors to inform make decisions on opportunity buy or sell shares.

The reappearance of New World Gold on The Florida state corporate database came nearly four months after someone who identified as a Minnesota resident named Mark Miller filed a lawsuit in of Florida Palm Beach County Courthouse against New World Gold, looking for an order to hold a shareholders’ meeting.

A Palm Beach County judge in April upheld the motion and ordered a shareholders’ meeting to be held on May 27, judicial documents show.

Miller said in a June 17 court filing that during that shareholders’ meeting, “a motion was made remove an existing one director (who is physically incapacitated) and to have Mr. Miller elected how director. “

The same shareholders voted unanimously to elect Miller as director.

New World Gold Reclaimed in a June 11 Press release who acquired a mine business in Wyoming with access gold and lithium. Lithium is a material Used in batteries for personal electronics, as well as for electric vehicles.

One week later, on June 18, a press release claimed that New World Gold had identified property in Nevada and South Dakota for extraction.

The company said in a Press release Friday he had “officially acquired” a placer claim in South Dakota.

Post on Twitter, Stocktwits, Reddit, and Investors Hub all referred to Miller as their CEO of New World Gold.

“$ NWGC power now definitely still a buy I bought some more off this little dip !! I trust in the new CEO Mark Miller, ” one Twitter user She said on 1st of June

“I think we will have a lithium announcement with $ nwgc “, tweeted another user on 3 June.

“I followed the CEO on twitter Mark Miller . I expect you to drop BOMB tomorrow !!! “

But the company tweeted on June 4 which appointed Ohio attorney Bob Honigford as its CEO and director.

A research for Honigford in the SEC document database returns no returns results. He did not respond to requests for comment by CNBC.

“So, no Mark Miller ” said one user in a Reddit forum called NWGCShareholders.

“It’s terrible news, “another user rang in.

“Mark was the type to get investor attention and reinstate. Bob in reality does business in the field, “said another user in the same thread.

The shares of New World Gold price peaked on June 3 at around 4 cents.

But from Friday it was trading less than a penny. That still was more over 8,000% higher compared to its 52-week minimum in December, before Miller’s lawsuit.

There media 30 days trading volume of New World Gold shares is more of 146 million shares change of hands per day.

New World Gold responds

Following the CNBC report on Miller’s indictment, New World Gold tweeted that Miller was not connected to the company, despite claims to the contrary in the Palm Beach County complaint.

“Miller has no control over Corporate business o news release, and he is NOT involved with the future expansion of Operations “, New World Gold tweeted on June 19.

David Rothstein, the attorney representing Mark Miller in the Palm Beach County lawsuit involving New World Gold likewise did not respond to a request for comment.

CNBC was unable to reach New World Gold at the email address indicated on its press releases.

The SEC did not respond to requests from CNBC for comment.

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