Penny Stock Fraudster Gregory Ellis ordered to U.S. to face charges in connection with global $140M scheme

An Ontario judge has signed an order committing Gregory Ellis of Toronto to be extradited to the U.S. to face charges in connection with an alleged international penny stock ring that pulled $140 million from investors.

Justice Wailan Low of the Superior Court of Justice signed the order following a hearing on Friday.

Ellis, who represented himself during the hearing, said he was “a victim of circumstances,” and that he believed he was hired to do legitimate call centre work.

“I don’t have too much to say,” he told the court. “I was hired for a legitimate purpose. I’m a victim of not knowing the full scheme. I don’t believe this is enough evidence to convict me.”

In an extradition proceeding, the presiding judge does not weigh the evidence in the case, but considers whether it would be sufficient to lay charges in Canada if the events had taken place here.

The judge also needs to be satisfied that the person being extradited is the same person being sought by foreign authorities.

The U.S. Department of Justice alleges that Ellis was among four Canadians and five Americans involved in a criminal conspiracy to defraud penny stock investors.

The other Canadians charged are Sandy Winick, Greg Curry, and his son Kolt Curry. All are in jail in the U.S. awaiting trial. Winick and Greg Curry were arrested by FBI agents in Thailand last summer after initially evading authorities. U.S. authorities allege the complex operation is one of the largest in history. They claim it included a pump and dump scheme where share prices were inflated and then dumped on unsuspecting investors, as well as an advance fee scheme that involved persuading investors to pay for services in connection with selling their stocks or pay taxes on the proceeds. “There is more than some evidence Mr. Ellis took part in a conspiracy to defraud investors,” Heather Graham, counsel for the Department of Justice, told the court. Kolt Curry is now co-operating with U.S. authorities and providing details, according to documents filed during the hearing. An undercover officer who worked on the case is prepared to testify that he met Curry and Ellis at an office in Canada, according to the documents. During the meeting, Curry worked out call scripts and Ellis talked about how he defrauded the same victim previously and planned to defraud him again with the same scheme, the officer alleges. Ellis didn’t react when the judge gave her decision. A few moments later, he turned to look at two supporters in the courtroom and shook his head. Ellis, who is being held in custody in Toronto, has 30 days to appeal the order.

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A double bottom is similar, but in reverse. Prices fall to a certain level and then reverse because the demand outstripped the supply at that level. If prices fall again to the level at which they stopped before, it is called a double bottom. If prices continue to fall through that level, a double bottom breakdown is recognized by our alert system. The double bottom breakdown implies that the buyers who were supporting the price are no longer able to create demand that is more than the supply, and prices are breaking down

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Six Ontario residents charged in alleged $200-million investment fraud

Six Ontario residents charged in alleged $200-million investment fraud TORONTO — The Canadian Press Six Ontario residents are facing charges after RCMP say thousands of investors and the Canadian government lost millions of dollars in an alleged fraudulent investment scheme.

 The Mounties say their investigation began in April 2012 when they received information about people involved in a possible “tax avoidance scheme.” Investigators have determined that since 2004, at least six people enticed thousands of investors to participate in an alleged illegal tax shelter. RCMP say investors were led to believe they could legitimately purchase a company’s business losses that could then be used to lower their taxable incomes.

However, police allege many of these losses were fraudulent and resulted in substantial illegitimate income tax refund cheques being issued off the backs of taxpayers.

RCMP Assistant Commissioner Stephen White says the alleged fraud scheme cost the federal government more than $200-million. The six people have been arrested and each is charged with two counts of fraud over $5,000 and one count of commission of an offence for a criminal organization,

Charged are Vincent (Vince) Villanti, 66, of Whitby, Shane Davidson Smith, 46, of Peterborough, David Prentice, 52, of Oakville, Ravendra (Ravi) Chaudhary, 65, of Toronto, Andrew Lloyd, 42, of Pickering and Joe Loschiavo, 49, of Toronto. Police allege the companies used by the accused to run the scheme included Integrated Business Concepts, Synergy Group 2000, Cason Global Wealth Association and IBCA 2009. Police say the investigation is ongoing and further arrests and charges are possible.