Articles Tagged with MLF Group

shutterstock_143179897The securities attorneys of Gana Weinstein LLP are investigating potential recovery options for investors of Samuel DelPresto (DelPresto) who suffered investment losses as a result of fraud. Recently, the Securities and Exchange Commission (SEC) filed an amended complaint. The SEC’s complaint, charged DelPresto, MLF Group, LLC (MLF), and Donald Toomer, Jr. (Toomer) with allegations of engaging in a series of fraudulent schemes designed to manipulate the market price of and demand for the stocks of BioNeutral Group, Inc. (BONU); NXT Nutritionals Holdings, Inc. (NXTH); Mesa Energy Holdings, Inc, (MSEH); and ClearLite Holdings, Inc. (CLRH). The fraudulent schemes allegedly generated profits of approximately $13 million for DelPresto.

The SEC alleged that each scheme followed a similar pattern whereby DelPresto and a business partner identified only as “Individual A” used a private company in need of financing to orchestrate a reverse merger of it and a shell company that DelPresto and Individual A controlled. Once the reverse merger was consummated, the SEC alleged that DelPresto and Individual A engaged in manipulative trading, paid for promotional campaigns, and otherwise engineered an attractive and rising stock price. The SEC alleged that once the stock price reached high levels then DelPresto and Individual A sold their stock at the expense of investors.

In order to carry out their scheme, the SEC alleged that DelPresto, Individual A, and others deposited shares in brokerage accounts with a registered broker referred to as the “Trader”. The SEC found that the Trader, DelPresto, Individual A, and others then engaged in a pattern of matched trading between and amongst brokerage accounts that they controlled.