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Securities fraudster who used Belizean shell companies gets 12 years

Posted: Monday, February 13, 2017. 4:48 p.m. CST.

By BBN Staff: Gregg Mulholland, 47, a California stock promoter, was sentenced to 12 years in a New York jail for money laundering offenses with links to shell companies created in Belize.

Mulholland plead guilty to charges in May 2016. He has been held in a Brooklyn’s jail since June 2015 when he was arrested by Federal Bureau of Investigation (FBI) agents in Phoenix, Arizona as he boarded a private jet.

Mulholland and his alleged co-conspirators were accused of perpetrating pump-and-dump schemes on dozens of publicly traded penny stocks, eventually netting $300 million in illicit profits funnelled through a network of offshore shell companies in Belize and Panama.

Mulholland and his co-accused, Robert Bandfield, were sentenced February 6 in U.S. district court in Brooklyn. Bandfield was sentenced to six years in prison for his part in the scheme, which enabled corrupt clients to “evade reporting requirements to the IRS [Internal Revenue Service]by concealing the proceeds generated by the manipulated stock transactions through the shell companies and their nominees,” according to a release from the United States Department of Justice office in Brooklyn.

The scheme involved Belize-based Cynk Technology Corp, which surged briefly to a market value of $6 billion on the stock market in 2014.

Prosecutors accused Mulholland of also manipulating the shares of numerous other public U.S. companies, and laundering the profit through at least five offshore law firms to avoid Internal Revenue Service (IRS) reporting requirements.

They said Mulholland was also the “secret” owner of Legacy Global Markets SA, a Panama – and Belize-based broker-dealer and investment manager indicted in September 2014 over a separate alleged $500 million fraud scheme.

Mulholland was charged along with co-conspirators including Bandfield, a U.S. citizen who was accused of scheming with five other executives, including Bahamians Kelvin Leach and Rohn Knowles, who were both detained in Belize, and group of offshore brokerage entities to set up sham companies and facilitate penny-stock fraud, tax evasion and money laundering.

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