Monday, May 19, 2008

Turns out you really can't trust spammers

Turns out you really can't trust spammers.

By Carol S. Remond
A Dow Jones Newswires Column

A recently unsealed court document shows that convicted spammer Jeremy Jaynes has for almost two years been key in helping federal prosecutors make their case against several alleged co-conspirators in a multimillion-dollar securities fraud and money-laundering scheme.

Jaynes, a prolific Internet spammer, was charged in 2003 under a Virginia state law banning the bulk distribution of junk email. He was convicted in the state court and sentenced to nine years in prison.

Federal court documents unsealed earlier this month show that Jaynes, who has been under house arrest while appealing his spamming conviction, pleaded to one count of securities fraud in November 2006 and has been cooperating with the government since then.

Under his plea agreement, Jaynes faces a maximum sentence of 20 years imprisonment in the federal case. Documents filed in the U.S. District Court for the Western District of North Carolina, Statesville Division, show that Jaynes is scheduled to be sentenced on May 6.

Jaynes was featured in several Dow Jones Newswires "In the Money" columns for his participation in the illegal promotion of penny stocks, including Absolute Health and Fitness Inc. (AHFI) and Concorde America Inc. (CCND).

Criminal prosecutors in North Carolina have already nabbed several of Jaynes' co-conspirators, including former U.S. attorney Sam Currin. Currin, a former protege of Republican U.S. Sen. Jesse Helms, was once North Carolina's senior federal prosecutor and a former North Carolina Superior Court judge. He pleaded guilty to money laundering and obstruction charges and was sentenced to spend more than five and a half years behind bars.

The complaint filed against Currin and others followed in the footsteps of civil cases filed against promoters and entities associated with the companies by the Securities and Exchange Commission in the U.S. District Court for the Southern District of Florida in 2004.

Most recently, David Hagen, former chief officer of GTX Global, was arrested in New York after returning to the U.S. from the Bahamas where he had fled. Hagen is accused of selling stock at inflated prices and laundering his profits through bank accounts in the Bahamas, the Netherlands, Cyprus and the U.S.

Court documents show that an unnamed cooperating witness helped the government convince Hagen to return to the U.S.

The bill of information detailing Jaynes' involvement shows that from 2003 to 2006, he conspired with others, including Hagen, to manipulate the stock prices of publicly traded companies. The manipulation included the use of Internet search engine advertising, spam emails, Web sites, unsolicited faxes and voice-mail broadcasts to fraudulently tout stocks.

Besides Currin and Howell and Vernice Wolz, two accomplices in the money-laundering scheme already under arrest, the bill of information filed in Jaynes' criminal case points to several other targets of federal prosecutors.

"Mr. O," an unindicted co-conspirator from Kalamazoo, Mich., is Donald Oehmke. "Mr. K," an unindicted co-conspirator residing in Montreal, is Bryan Kos.

In the original case, which led to ongoing criminal prosecution, Kos and Oehmke were accused by the SEC of having pumped the stocks of Concorde America and Absolute Health and Fitness. The two stock promoters, without denying or admitting the charges, settled with the SEC and agreed not to violate securities laws.

Also mentioned in the complaint against Jaynes is "Mr. R," likely to be Jere Ross, a Florida lawyer who facilitated some of the money transfers outside the country. Finally, "Mr. H," likely refers to Hagen.

(Carol S. Remond is an award-winning columnist who won a Gerald Loeb Award in 2005 for best news service content with "Exposing Small-Cap Fraud," a series of articles that described how three small companies unscrupulously pumped up their stocks.)

-By Carol S. Remond, Dow Jones Newswires; 303-997-5783; [ 04-22-08 1454ET ]


Anonymous Anonymous said...

I am a former employee. I have been reading this for a long time. Richard, grow up. I think they should put Dave under the jail, but christ man, move on.

11:20 AM  
Anonymous Anonymous said...

Here's the indictment

5:24 AM  
Anonymous Anonymous said...

"former employee" - that is blasphemy.

I am however disappointed Richard has not already commented about how he, and he alone, was responsible for getting Jaynes talking.

Must be flying the world over in his private jet righting other wrong-doings and saving modern civilization.

All hail Richard.

5:23 PM  
Anonymous Anonymous said...

"former employee", I must too take a stand for the all-mighty Richard. You can not comprehend the mounds of $$$ he has lost on this investment.

We all know that
is the best place for intelligent investors like Richard to throw a wad of cash at expecting a grand return.

I mean google "hot stock picks", invest a few K in something that sounds jazzy and sophisticated, and then wonder what happened? We can not understand the vengeance one would feel, could we? I mean wouldn't you feel taken?



210 Scrotum Lane
Southern Pines, NC 28387

5:20 AM  
Anonymous Anonymous said...

Don't ya just love it. Envy runs real deep here. And I will move on: when YOU name yourself!! And my "Jet" is reserved for any of you who wish to show your sucked up faces at Hagen's trial. I'll pick you up!! I'll be there!!

Richard Bennett

( I always respond when I am taking time off from saving the world---from anonymous mouths!!)

10:48 AM  
Anonymous Anonymous said...

When is Hagen's trial?
Latest I heard on Keri Keenan she is in Paris working as an interior designer!

3:28 PM  
Anonymous Anonymous said...

Yeah Richard. It's envy.

4:42 AM  
Anonymous Anonymous said...

The Plea Bargaining is on!! New announcements soon. Email me and I will bring you up to date as this blog has redirected to me instead of the matters at hand. (And I hope all is well with the anony-mouse gang. Oh well, keeps you off the child porn sites a little longer when authoring responses directed at me.:)

Richard Bennett

5:30 AM  
Anonymous Anonymous said...

I don't look at or think about child-porn, but apparently someone does.

12:57 PM  
Anonymous Anonymous said...


You're inferiority complex and overcompensation through vitriol and rancor have redirected this site.

Now you want us all to email you?

We much more appreciate Ex-GTX. What we want from you is silence.

5:01 AM  
Anonymous Anonymous said...

Looks like someone found an online dictionary!! Silence! Silence! You wimp. I AM very involved and will stay very vocal until ALL of those scum bags are sentenced. BUT I will shut up when any of you non-investor LOSERS or non-involved bring YOUR name to the table. Otherwise you SHUT UP. Be silent wimp. As far as a complex: the only complex in my world is a Prison Complex!!For Hagen and the likes. And don't you forget this: You have the luxury of using my first name only because of this blog so that might reason out as your "inferior" self lashing out at your superior--very superior--target.

As for the matter(s) at hand: I called Judge Britt's office. You can do the same @ 919-645-1745. But then it isn't information for everyone at this blog. The real players in this matter have and are contacting me. So, shhhhhhhh, little anony-mouse. but then again, you do sound awful "Hagenite" like.

Richard Bennett MD PhD

3:31 PM  
Anonymous Anonymous said...

The case info is Western District Case Manager @ 704-350-7400.

shhhhhhh, wimp(s). You spoke for "we" in your post. Is "we" the sister you married?:) Oh darn, my inferior complex is showing!

Richard Bennett

7:32 AM  
Anonymous Anonymous said...

Not only does Richard like to think about child-porn, but incest as well. Guessing the next lash will involve beastiality. Very superior indeed.

10:13 AM  
Anonymous Anonymous said...

Point proven

10:24 AM  
Anonymous Anonymous said...

Yes, Richard -- a dictionary.

Obviously, you are the only one reading this blog with degrees.

10:46 AM  
Anonymous Anonymous said...

Hi, does anyone know how to get in contact with this blogger? I am looking for more information on Trent Martin.

11:30 AM  
Anonymous Anonymous said...

Hi, does anyone know how to get in touch with this blogger? I am looking for more information on Trent Martin.

11:30 AM  
Anonymous Anonymous said...

Envy Richard, are you serious? I have learned a long time ago that people who talk, AT GREAT LENGTH, about how much they have, or how smart they are, etc...always turn out, in person, to be lying cowards. Richard is no exception.


7:54 AM  
Anonymous Anonymous said...

Here we go again. The weak-in-the-knees keyboard hero's are back Look, Bozo(s, we who give our guts to this effort need not respond except to remind you of why you are who you are. You could NEVER insult me as I am still invulnerable to you slime-balls as I am a name not an anonymouse wannabe. Have you forgotton the name "HAGEN" dipshit? Or Brecher or Ivanov etc? Or the multiple of victims? Obviously you have because you have nothing in this world but this blog! NONE of you could ever trump me as long as you hide behind the keyboard. If you--any of you-have a financial stake in this, then you would be best serving this blog with prospective and forward looking dialogue instead of digging into your bags of inferiority complex-related responses hoping to outdo me or insult me. It won't happen, losers. I post your responses to a Psych class I Proctor. So keep on with the material. We all really appreciate it!

Darn, "point proven" is still our favorite!!

The case info is Western District Case Manager @ 704-350-7400.

Richard Bennett MD PhD

"you will find me...AT GREAT LENGTH" at Google. YOU?

9:14 AM  
Anonymous Anonymous said...

I certainly hope the class gets to enjoy your diatribes as well Richard.

That's some rich material, probably a bit beyond psych I, however.

9:11 AM  

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