On July 17, U.S. Attorney for the Eastern District of New York Loretta Lynch announced charges of securities fraud, wire fraud, and conspiracy against Abraxas J. Discala, CEO of OmniView Capital Advisors, and six other individuals, including registered brokers and an attorney. According to the government, from 2012 to 2014, the defendants and others agreed to defraud investors and potential investors in four public companies by artificially controlling the price and volume of the companies’ traded shares. The government claims that the defendants made share purchases to drive up the price and then sold the stock at its peak, in part through unauthorized stock purchases in unsuspecting investors’ retirement accounts. The defendants allegedly furthered the scheme through false and misleading press releases, SEC filings, and client calls by brokers who are accused of participating in the conspiracy. The market value of the companies, which had virtually no assets or business activity, rose as high as $300 million before the scheme was uncovered. U.S. v. Discala, 14 Cr. 399 (E.D.N.Y.) DOJ Press Release.
