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The case focuses on allegations of stock manipulation and misleading promotions to attract unsuspecting investors, generating expected profits of $ 145 million.
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April 16, 2022 • 7 hours ago • 3 minutes reading • 20 comments File photo of Vancouver businessman David Sidou. Photo by Jonathan Wigs / AP
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Vancouver businessman David Sidou has been named by the US Securities and Exchange Commission in an alleged large-scale lawsuit for securities fraud filed in Federal Court in New York.
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Two years ago, Sidou was fined $ 250,000 and spent 90 days in prison after admitting to participating in a large-scale fraud scheme to help his sons enter American universities.
Sidoo was named along with seven others in a civil lawsuit that described a series of extremely lucrative “pump and dump” deals in 17 publicly traded companies from 2006 to 2020.
He has not been charged and the allegations have not been proven in court.
The case focuses on accusations of stock manipulation and misleading promotions to attract unsuspecting investors, generating expected profits of $ 145 million on the orders of London-based accused leader Ronald Bauer, who describes himself as a dynamic venture capitalist.
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“Bauer oversaw almost every aspect of the scheme and most often called on other defendants, among other things, to gain control of the issuer, organize the issuance of shares and conduct promotional activities,” according to investigators who coined the nickname “Bauer Ring”. -fertile group.
Investigators say Sidou is part of a secondary group called the Sidou and Bauer Ring Coalition. Along with Bauer and Sidou, the other names are Craig James Auringer, Alon Friedlander, Massimilano Pozzoni, Daniel Mark Ferris, Peter Dmitrov Mihailov and Adam Christopher Cambayz.
The defendants are listed in several securities violations.
The documents trace alleged undertakings and “false documents” in everything from oil and gas and pharmaceuticals to heavy metals and software companies commonly used by Swiss offshore financial firms.
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The lawsuit cites Sidoo as a beneficiary of share sales who “failed to disclose its actual ownership and trade and to register its share sales as required by law.”
“By such means, the defendants hid their coordinated efforts from porters (transfer agents and brokers) who would otherwise treat their shares as limited shares that could not be freely bought, sold or transferred to the retail market.” says in the lawsuit. claims.
“Defendants also disregarded their affirmative obligations under federal securities laws, as controlling shareholders, to report their holdings, trading and agreements to the same, and thus concealed their coordinated efforts from investors.
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The Securities and Exchange Commission is seeking civil sanctions and injunctions against defendants involved in the offering of valuable shares – and the payment of alleged “illegally earned profits”.
Boston-based Sidoo lawyer Martin Weinberg did not send a statement asking for comment, but told Business in Vancouver that Sidoo denied the allegations.
Sidou, a prominent graduate of the University of British Columbia and a former Canadian Football League player, was previously sentenced to 90 days in jail for paying $ 200,000 to force someone to secretly take the SAT entrance exam in his place. son, who were later admitted to the University of California.
He was among 55 people accused of participating in a scheme nicknamed Varsity Blues, in which wealthy parents conspired with college admissions consultant William Rick Singer to use bribes and fraud to secure the adoption of their children. in the best schools.
David Sidou posed with Justin Trudeau in 2016 during the UBC Thunderbirds meeting with the Prime Minister after the football team’s victory in the Vanier Cup in 2015. Sidou is a former UBC player and financial supporter of the football program. Photo by Handout / PNG
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Varsity Blues: Vancouver businessman David Sidou gets 90 days in prison
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David Sidou lost his BC Sports Hall of Fame status after pleading guilty
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