SEC v. David N. Osegueda; Ishmail Calvin Ross; Zachary R. Logan; and Jessica Snyder, No. LR-24472, Central District of California (May 20, 2019) — Press Release
raw: David N. Osegueda, Ishmail Calvin Ross, aka Calvin Ross, Zachary R. Logan, and Jessica Snyder, fka Jessica Gutierrez
David N. Osegueda, Ishmail Calvin Ross, aka Calvin Ross, Zachary R. Logan, and Jessica Snyder, fka Jessica Gutierrez, No. 2:19-cv-04348 (May 20, 2019)
The SEC charged David N. Osegueda, Ishmail Calvin Ross, Zachary R. Logan, and Jessica Snyder for their roles in a $1.9 million pump-and-dump scheme involving Green Cures & Botanical Distribution, Inc.
The defendants allegedly manipulated the stock price through false and misleading statements, press releases, and promotional campaigns, then sold their shares to unsuspecting investors, generating approximately $1.9 million in illicit proceeds. The SEC charges the defendants with violating antifraud provisions of the Securities Act and Securities Exchange Act. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, officer and director bars, and penny stock bars.
The Securities and Exchange Commission charged four individuals, David N. Osegueda, Ishmail Calvin Ross, Zachary R. Logan, and Jessica Snyder, for their roles in a $1.9 million pump-and-dump scheme involving the stock of Green Cures & Botanical Distribution, Inc. Ross and Osegueda concealed Ross’s control of the company and converted promissory notes into stock, while Logan orchestrated a fraudulent promotional campaign using false press releases, emails, and bulletin board posts to inflate the stock price. The defendants then dumped their shares on unsuspecting investors, generating illicit proceeds of $1.9 million, while making false statements to brokerage firms to facilitate the trades. The SEC alleged violations of Sections 17(a)(1), 17(a)(3), and 10(b) of the Securities Act and Exchange Act, as well as registration violations. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, civil penalties, officer and director bars, and penny stock bars. Snyder, who allegedly assisted in hiding Ross’s control, is not subject to disgorgement or officer/director bars.
Exhibits & Attached Documents (1)
Extracted insights
- $1.90M $1.9 million $1M–$10M
- person david n. osegueda
- scheme_term for their roles in a $1.9 million pump-and-dump microcap fraud
- scheme_term for their roles in a $1.9 million pump-and-dump scheme
- person ishmail calvin ross
- person jessica snyder
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- person zachary r. logan
- Securities and Exchange Commission charged four individuals for their roles in a $1.9 million pump-and-dump scheme
- Securities and Exchange Commission charged four individuals for their roles in a $1.9 million pump-and-dump microcap fraud
- David N. Osegueda charged in a $1.9 million pump-and-dump fraud
- Ishmail Calvin Ross charged in a $1.9 million pump-and-dump fraud
- Zachary R. Logan charged in a $1.9 million pump-and-dump fraud
- Jessica Snyder charged in a $1.9 million pump-and-dump fraud
- SEC charged four individuals
- SEC filed lawsuit on May 20, 2019
- $1.9 million involved in pump-and-dump fraud
- SEC charged four individuals
- four individuals roles $1.9 million pump-and-dump
- David N. Osegueda charged pump-and-dump scheme
- Ishmail Calvin Ross charged pump-and-dump scheme
- Zachary R. Logan charged pump-and-dump scheme
- Jessica Snyder charged pump-and-dump scheme
- SEC charged four individuals
- SEC filed litigation release
- David N. Osegueda, Ishmail Calvin Ross, Zachary R. Logan, and Jessica Snyder involved in $1.9 million fraud
SEC Charges Four Individuals in a Microcap Fraud Litigation Release No. 24472 / May 20, 2019 Securities and Exchange Commission v. David N. Osegueda, Ishmail Calvin Ross, aka Calvin Ross, Zachary R. Logan, and Jessica Snyder, fka Jessica Gutierrez, No. 2:19-cv-04348 (C.D. Cal. filed May 20, 2019) The Securities and Exchange Commission charged four individuals for their roles in a $1.9 million pump-and-dump scheme in the stock of a public Southern California beverage and cannabis company, Green Cures & Botanical Distribution, Inc. According to the SEC's complaint, in 2015, Ishmail Calvin Ross of Canoga Park, California secured - but hid - his control of Green Cures behind a figurehead CEO and a front company created by Ross and Jessica Snyder of Avondale, Arizona. At the same time, David N. Osegueda of Sun Valley, California allegedly sold Ross portions of convertible promissory notes, which documented debts owed by Green Cures that could be repaid with the company's stock. Osegueda and Ross converted the debt into shares and hired Zachary R. Logan of La Jolla, California to provide stock promotion services in return for Green Cures shares. Osegueda, Ross, and Logan then deposited their shares into their brokerage accounts. In order to induce the brokerage firm to accept these shares, they made false and misleading statements, including that they were unaware of any promotional campaigns and that they were not working with anyone regarding the stock. The SEC also alleges that in 2016, the defendants pumped up Green Cures's stock price and trading volume through a promotional campaign, including false and misleading press releases and thousands of emails, text messages, and posts on investor bulletin boards. Osegueda, Ross, and Logan then allegedly dumped their shares onto unsuspecting investors, generating approximately $1.9 million in illicit proceeds. The SEC's complaint, filed in Los Angeles, charges each defendant with violating the antifraud provisions of Sections 17(a)(1) and 17(a)(3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint also charges Osegueda, Ross, and Logan with violating the registration and antifraud provisions of Sections 5(a), 5(c), and 17(a)(2) of the Securities Act. The SEC seeks permanent injunctions, disgorgement with prejudgment interest (except as to Snyder), civil penalties, officer and director bars (except as to Logan), and penny stock bars. The SEC's investigation was conducted by Roberto A. Tercero and supervised by Spencer E. Bendell in the Los Angeles Regional Office. The litigation will be led by Lynn Dean and supervised by Amy Longo. The SEC appreciates the assistance of the Financial Industry Regulatory Authority. SEC Complaint
SEC Charges Four Individuals in a Microcap Fraud Litigation Release No. 24472 / May 20, 2019 Securities and Exchange Commission v. David N. Osegueda, Ishmail Calvin Ross, aka Calvin Ross, Zachary R. Logan, and Jessica Snyder, fka Jessica Gutierrez, No. 2:19-cv-04348 (C.D. Cal. filed May 20, 2019) The Securities and Exchange Commission charged four individuals for their roles in a $1.9 million pump-and-dump scheme in the stock of a public Southern California beverage and cannabis company, Green Cures & Botanical Distribution, Inc. According to the SEC's complaint, in 2015, Ishmail Calvin Ross of Canoga Park, California secured - but hid - his control of Green Cures behind a figurehead CEO and a front company created by Ross and Jessica Snyder of Avondale, Arizona. At the same time, David N. Osegueda of Sun Valley, California allegedly sold Ross portions of convertible promissory notes, which documented debts owed by Green Cures that could be repaid with the company's stock. Osegueda and Ross converted the debt into shares and hired Zachary R. Logan of La Jolla, California to provide stock promotion services in return for Green Cures shares. Osegueda, Ross, and Logan then deposited their shares into their brokerage accounts. In order to induce the brokerage firm to accept these shares, they made false and misleading statements, including that they were unaware of any promotional campaigns and that they were not working with anyone regarding the stock. The SEC also alleges that in 2016, the defendants pumped up Green Cures's stock price and trading volume through a promotional campaign, including false and misleading press releases and thousands of emails, text messages, and posts on investor bulletin boards. Osegueda, Ross, and Logan then allegedly dumped their shares onto unsuspecting investors, generating approximately $1.9 million in illicit proceeds. The SEC's complaint, filed in Los Angeles, charges each defendant with violating the antifraud provisions of Sections 17(a)(1) and 17(a)(3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint also charges Osegueda, Ross, and Logan with violating the registration and antifraud provisions of Sections 5(a), 5(c), and 17(a)(2) of the Securities Act. The SEC seeks permanent injunctions, disgorgement with prejudgment interest (except as to Snyder), civil penalties, officer and director bars (except as to Logan), and penny stock bars. The SEC's investigation was conducted by Roberto A. Tercero and supervised by Spencer E. Bendell in the Los Angeles Regional Office. The litigation will be led by Lynn Dean and supervised by Amy Longo. The SEC appreciates the assistance of the Financial Industry Regulatory Authority. SEC Complaint