Securities and Exchange Commission v. Douglas Roe and Donald Lindo, Case No. 8:17-cv-01293-TDC (D.Md., filed May 11, 2017)
The Securities and Exchange Commission recently announced charges against two individuals involved in a fraudulent scheme to offer for sale a penny stock by filing false and misleading registration statements with the Commission.
According to the SEC’s complaint filed in U.S. District Court for the District of Maryland, Douglas Roe, a resident of Vancouver, British Columbia, teamed with Donald Lindo, a resident of Kingston, Jamaica, in an attempt to register for sale shares of Blue Mountain Eco Tours, Inc. The complaint alleges that Roe and Lindo engaged in a scheme to file the registration statements that they knew or were reckless in not knowing contained false statements.
The complaint alleges, among other things, that Blue Mountain’s registration statements:
- Falsely identify Lindo as Blue Mountain’s sole officer, director and employee, when, in fact, Lindo was a mere figurehead The complaint further alleges that Lindo blindly signed management representation letters and loan verification documents sent to Blue Mountain’s auditors.
- Fail to disclose that Roe was a control person of Blue Mountain. According to the complaint, Roe enlisted Blue Mountain’s attorney, auditors, and accountant and controlled the company’s communications with these professionals. Additionally, Roe used his own monies to pay professional fees for auditing services critical to facilitating Blue Mountain’s registration statements.
- Falsely state that Lindo loaned money to Blue Mountain for working capital purposes; and
- Falsely state that Blue Mountain had partially repaid the loan to Lindo.
The SEC’s complaint charges Roe and Lindo with violating Sections 17(a)(1) and (3) of the Securities Act of 1933. The SEC seeks financial penalties, permanent injunctions, officer-and-director bars and penny stock bars against both defendants.
With extensive courtroom, arbitration and mediation experience and an in-depth understanding of elder abuse, exploitation and securities law, our firm provides all of our clients with the personal service they deserve. Handling cases worth $25,000 or more, we represent clients throughout Florida and across the United States, as well as for foreign individuals that invested in U.S. banks or brokerage firms. Contact us to arrange your free initial consultation.
At the Boca Raton Law Office of Russell L. Forkey, we represent clients throughout South and Central Florida, including Fort Lauderdale, West Palm Beach, Boca Raton, Sunrise, Plantation, Coral Springs, Deerfield Beach, Pompano Beach, Delray, Boynton Beach, Hollywood, Lake Worth, Royal Palm Beach, Manalapan, Jupiter, Gulf Stream, Wellington, Fort Pierce, Stuart, Palm City, Jupiter, Miami, Orlando, Maitland, Winter Park, Altamonte Springs, Lake Mary, Heathrow, Melbourne, Palm Bay, Cocoa Beach, Vero Beach, Daytona Beach, Deland, New Smyrna Beach, Ormand Beach, Broward County, Palm Beach County, Dade County, Orange County, Seminole County, Martin County, Brevard County, Indian River County, Volusia County and Monroe County, Florida. The law office of Russell L. Forkey also represents South American, Canadian and other foreign residents that do business with U.S. financial institutions, investment advisors, brokerage and precious metal firms.