- A Minnesota general contractor pleaded guilty to a plan to hijack dormant shell companies and then to unwitting investors to pump-and-dump their stock shares into the over-the-counter market.
- Mark Miller is the second person to plead guilty to the sham scam that ran from 2017 to 2019, and was involved in fraudulent acquisitions of at least four publicly traded companies that had no effective business.
- Breezy Point resident’s co-defendant, Christopher James Rajkaran, previously pleaded guilty to a single count of conspiracy to commit securities fraud last week in US District Court in Minneapolis.
A Minnesota general contractor pleaded guilty Thursday to a plan to hijack dormant shell companies and then to unwitting investors to pump-and-dump their stock shares in the over-the-counter market.
Mark Miller is the second person to plead guilty to the Shameless scandal, which ran from 2017 to 2019, and involved fraudulent acquisitions of at least four publicly traded companies that had no effective business, and some had failed to make the required regulatory filings. .
His co-defendant, Christopher James Rajkaran, previously pleaded guilty to a single count of conspiracy to commit securities fraud last week in US District Court in Minneapolis.
Miller pleaded guilty to the same charge in that court. Like Rajkaran, he will have 14 other criminal cases accused of sacking him when he is later sentenced according to a plea agreement with federal prosecutors.
Miller is free on bond. But Rajkaran, who lives in Queens, New York, is being detained as a flight risk because of his ties to the nation of Guyana.
A third defendant, Syed Jabarian of Minnesota, has pleaded not guilty and is awaiting trial.
As part of his plea, Miller agreed to forfeit $38,000 in illegally earned income.
Federal sentencing guidelines suggest that he faces a prison term of 30 to 37 months and a fine of between $10,000 and $100,000.
But Judge David Dottie will determine Miller’s actual sentence on sentencing.
During the hearing of his plea, Miller responded briefly by acknowledging his understanding of the plea agreement and by a prosecutor detailing his criminal acts.
“I’m guilty of the summary you walked through,” Miller told the prosecutor.
The three defendants were charged in June with planning to use resignation letters from others to seize control of four shell companies — Digitity, Ncompass Holdings, Bell Buckle Holdings and Utilicraft Aerospace Industries, among others.
According to prosecutors, Miller and Jaberian, as well as an unidentified person related to Miller, became the nominal CEO and chairman of the targeted companies.
Miller acknowledged using the Securities and Exchange Commission’s Edgar public filing system and bogus press releases claiming new business opportunities to inflate the share prices of companies when in fact the firms had no significant operations or revenue. Was.
Miller admitted that he and his co-defendants bought millions of shares of stock in the companies, in many cases for less than a penny per share, and then sold them on the over-the-counter market several times for what they paid for. Was. Them. Prosecutors have said all three made hundreds of thousands of dollars in profits from the scheme.
At the time he was indicted, Miller was involved in an attempt to seize control of a Florida penny-stock company, New World Gold Corp., named as one of his seven targets in a criminal case or civil trial. has not been done. Against Miller filed by the SEC.
Miller voluntarily dropped a lawsuit filed in Florida as part of his attempt to capture New World Gold less than two weeks after CNBC reported his involvement with that company. Was.
Following criminal charges this summer, Miller resigned as a member of the city council of Breezy Point, Minn.