The U.S. Securities and Exchange Commission (SEC) announced on Tuesday that it has brought fraud charges against several people that it alleges were involved in a complex market-manipulation scheme involving the stock of Jammin’ Java Corp.
The SEC alleges that the company’s former CEO, Shane Whittle, a Canadian stock promoter, orchestrated the scheme. Specifically, the SEC alleges that Whittle befriended Bob Marley’s son, Rohan who once played for the Ottawa Rough Riders in the CFL and who had started Marley Coffee. That company became Jammin’ Java through a reverse takeover of a publicly traded shell company, which is when the SEC alleges that Whittle secretly took control of millions of shares of stock.
The SEC alleges that Whittle then spread the stock to offshore entities controlled by Wayne Weaver, another Canadian, who lives in the U.K. and Canada; Michael Sun, a citizen of India; and René Berlinger of Switzerland; among others.
The regulator further alleges that British twins Alexander and Thomas Hunter then touted the stock through fraudulent promotions before the shares were dumped on the public. The SEC says that the scheme generated at least $78 million in illicit profits.
According to the SEC’s allegations, Whittle and Weaver both live in British Columbia, along with other locations (Barbados, Nevis, and Jersey); and it says Thomas Hunter lived in B.C. at the time of the alleged misconduct.
The SEC’s complaint also charges several others with facilitating the scheme through offshore entities. None of the allegations have been proven.
“As alleged in our complaint, the defendants made millions of dollars in illicit profits at the expense of the investing public and attempted to conceal their misconduct through complex offshore networks that were revealed in our investigation,” says David Glockner, director of the SEC’s Chicago office, in a statement.
The SEC is seeking injunctions, disgorgement, prejudgment interest, and penalties as well as penny stock bars against all of the individuals and an officer-and-director bar against Whittle.