The U.S. Department of Justice (DoJ) announced that Michael Randles, a Canadian who lives in Costa Rica, was sentenced to 48 months in prison for his role in “an international money laundering conspiracy” stemming from a securities fraud scheme.
Randles, 49, pled guilty to one count of money laundering conspiracy in October 2016. The DoJ reports that Randles admitted in his plea agreement that he controlled — along with co-conspirator, Harold Bailey Gallison II — an offshore brokerage and money-laundering platform located in San Jose, Costa Rica, that used various names, including Moneyline Brokers, Sandias Azucaradas and Trinity Asset Services.
Randles admitted that the purpose of the firms was to trade securities, primarily “penny stocks,” through U.S. and offshore accounts, the DoJ reports. In addition, the firms laundered approximately US$1 million in proceeds from the “pump and dump” of Colorado-based company Bryn Resources Inc., which purported to be engaged in mining in Canada.
“In reality, Bryn was a shell company with no or nominal operations or assets,” the DoJ announcement notes.
Three of Randles’s co-conspirators, including Gallison, have previously pled guilty in the case. Gallison was sentenced to serve 216 months in prison.