Eight Indicted In 'Pump & Dump' Penny Stock Fraud Ring

By Aaron Poehler

Published on December 06, 2007

The people charged in the case include Beverlee Kamerling, 63, and her 22-year-old son, Nicholas Alexander, both of Bellevue, Washington; John Worthen, 66, of Salt Lake City, Utah; Donald Goldstein, 65, of Highland Beach, Florida, and his son, 35-year-old Jamie Goldstein, of Boca Raton., Fla.; Joel Ramsden, 32, of Delray Beach, Fla.; John Johansen, 37, of Plantation, Fla.; and Seth Quinto, 36, of Miami.

The eight are charged with 21 federal counts of securities fraud, mail fraud, international money laundering, conspiracy, and obstruction of justice.

According to the indictment, Kamerling and Alexander got control of four small companies, made false claims about the companies via faxes, news releases, and website postings, and caused shares of the companies to be issued without legal authorization. The companies whose stocks were manipulated in the scheme included America Asia Energy, Coattec Industries Inc., Detex Security Systems Inc. and Global Gaming Network Inc.

Bellevue attorney Tolan Furusho has already pleaded guilty to conspiracy and two counts of failing to file federal income tax returns for his role in the scheme.

Kamerling was previously banned from U.S. markets in a 1999 civil settlement that required her to repay nearly $1.5 million in fraudulently acquired gains.

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