Well, to make the long story short:
Presenting Macada Holding, Inc (OTC: MCDA) & its famous CEO, Mr. Mellone Jr., the master of the “stock price inflations” on bogus promises:
‘CHiPs’ star busted for alleged penny stock scheme
The Securities and Exchange Commission has slapped former “CHiPs” star Larry Wilcox with fraud charges for his role in an alleged penny stock kickback scheme. (check this link)
In a sting operation that reads like something from of a ’70s cop show, the Federal Bureau of Investigation snared a dozen potential lawbreakers involved in alleged schemes to boost the share prices of penny stock companies.
The SEC claims the former television star participated in interrelated kickback schemes with two other penny stock company executives: Alex Parsinia, CEO of Zcom Networks Inc., and Anthony Mellone, former CEO of Tri-Star Holdings Inc., a gold mining company. Mr. Wilcox is president and chief executive of UC Hub Group Inc., a mining and precious metals specialist founded in 1999.
Authorities claim the trio conspired to pay kickbacks to a pension fund fiduciary, encouraging it to misappropriate pension fund money to buy stock at inflated prices.
Specifically, the commission claims that, in May 2008, Mr. Mellone, then CEO of Tri-Star, searched for partners to help him inflate his company’s stock price, which was trading at less than one cent per share. After his role was revealed by a cooperating witness, an FBI undercover agent acted as the point-person for a corrupt trustee of a fake pension fund called Benefits and Pension Group, according to the SEC’s complaint.
Mr. Mellone allegedly paid $16,000 in kickbacks to the fund’s trustee in return for its purchase of 90 million restricted shares of Tri-Star. To hide the illicit payment, he covered up the transaction as a payment to a phony consulting company, Great Lakes Advisors LLC, the SEC alleged.
The complaint claims that Mr. Mellone was “thrilled” that the deal had worked. He then reached out to Mr. Wilcox and Mr. Parsinia, the SEC claims, because he thought they “might be interested” in participating in the scheme.
Mr. Wilcox paid $16,000 to Great Lakes after the fake pension fund bought up 1.6 million shares of UC Hub’s stock, the complaint states.
Mr. Parsinia paid $16,000 in kickbacks in exchange for the phony pension fund’s purchase of 3.32 million shares of Zcom’s stock, which traded below 18 cents a share, according to the SEC. Mr. Mellone allegedly pocketed a total of $4,000 for setting up these deals.
Besides the civil charges, the three men are also facing criminal charges filed by the U.S. Attorney’s Office for the Southern District of Florida.
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