Sponsored

Search This Blog

Brian Luke Community Blogger, WGRZ-TV

Friday, July 6, 2012

CEO of Axius Inc. and Finance Professional Indicted for Alleged Roles in Scheme to Bribe Stock Brokers and Manipulate Stock Prices


Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, July 5, 2012

WASHINGTON – The chief executive officer (CEO) of Axius Inc., a Nevada corporation, and a finance professional were indicted today on multiple charges for their alleged roles in a scheme to bribe stock brokers and manipulate the share price of Axius stock, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Loretta E. Lynch for the Eastern District of New York.
Roland Kaufmann, a Swiss citizen and the CEO of Axius, and Jean-Pierre Neuhaus, a Swiss citizen and finance professional, were each charged in an indictment filed today in the Eastern District of New York with one count of conspiracy to commit securities fraud and to violate the Travel Act, one count of securities fraud, one count of wire fraud, one count of violating the Travel Act, one count of conspiracy to commit money laundering and one count of money laundering.  According to court documents, Axius is incorporated in Nevada and its principal offices are in Dubai, United Arab Emirates.  Axius is a “holding company and business incubator” that develops other businesses. 
“As CEO of Axius, Mr. Kaufmann allegedly conspired with Mr. Neuhaus to fraudulently manipulate the value of his company’s stock,” said Assistant Attorney General Breuer.  “According to today’s indictment, he attempted to bribe stock brokers into artificially propping up the value of Axius stock.  With our partners in the U.S. Attorneys’ Offices, the Criminal Division’s Fraud Section is pursuing a nationwide effort to investigate and prosecute fraudulent conduct in our securities markets.”
“Rather than rely on the market to set the true value of Axius’ stock, the defendants allegedly sought to buy the best price possible through bribery and deception,” said U.S. Attorney Lynch.  “Their scheme stood to enrich themselves at the expense of the investing public.  We will vigorously investigate and prosecute any such corruption in the securities markets.”
“Conspiring to inflate the price of Axius shares artificially was likely to result in unjust enrichment for the defendants and undeserved losses for investors,” said Assistant Director-in-Charge Janice K. Fedarcyk of the FBI in New York.  “Market-driven fluctuations in share prices are risks investors have to accept. Illegal manipulations become the subject of FBI investigations.”
The indictment alleges that Kaufmann, 60, agreed with Neuhaus, 55, to defraud investors in Axius common stock by bribing stock brokers and manipulating the share price.  As part of the scheme, they enlisted the assistance of an individual they believed to have access to a group of corrupt stock brokers; this individual was in fact an undercover law enforcement agent.  Kaufmann and Neuhaus believed that the undercover agent controlled a network of stockbrokers in the United States with discretionary authority to trade stocks on behalf of their clients. 
The indictment alleges that Kaufmann and Neuhaus instructed the undercover agent to direct brokers to purchase Axius shares that were owned or controlled by Kaufmann in return for a secret kickback of approximately 26 to 28 percent of the share price.  Kaufmann and Neuhaus allegedly instructed the undercover agent as to the price the brokers should pay for the stock, and Kaufmann specifically instructed the undercover agent that the brokers would have to pay gradually higher prices for the shares they were buying.  The indictment alleges that Kaufmann and Neuhaus directed the undercover agent that the brokers were to refrain from selling the Axius shares they purchased on behalf of their clients for a one-year period.  By preventing sales of Axius stock, Kaufmann and Neuhaus allegedly intended to maintain the fraudulently inflated share price for Axius stock.
Kaufmann and Neuhaus were originally charged in a criminal complaint filed in the Eastern District of New York on March 8, 2012.  They were arrested on March 8, 2012.  No investors were actually defrauded in the undercover operation. 
In a related action, the Securities and Exchange Commission (SEC) today filed a civil enforcement action against Kaufmann and Neuhaus in the Eastern District of New York.  The department thanks the SEC for its cooperation in this matter.
This case is being prosecuted by Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shannon Jones of the Eastern District of New York.  The case was investigated by the FBI and the Internal Revenue Service. 
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.  For more information about the task force visit: www.stopfraud.gov.

No comments:

Advertiser

NETC LRC News and Information

Advertiser

Technology Headlines

The TSA Blog

FEMA Blog

White House.gov Video Feed

NYSDOT Recent Press Releases

Indian Point Press Releases

Indian Point Nuclear Power Plant EAS Messages

Indian Point Nuclear Power Plant

New York State-Wide RSS

Department of Homeland Security News

Department of Homeland Security Podcasts

Erie County RSS Feed

Erie County Emergency Management

The Weather Channel: Your Local Weather Outlook--Niagara Falls, NY (14304)

FEMA: New York Federal Disaster Declarations

Niagara County RSS Feed

National Weather Service

Albany County RSS Feed

Allegany County RSS Feed

Bronx County RSS Feed

Broome County RSS Feed

Cattaraugus County RSS Feed

Chemung County RSS Feed

Cayuga County RSS Feed

Ontario County RSS Feed

Warren County RSS Feed

City of Toronto News Releases

US Consumer Product Safety Commission - Recent Recalls and Product Safety News

Center for Missing & Exploited Children: NY Missing

Lead Photos - U.S. Dept. of Defense

CBP.gov: Alert - Maritime - Gulf of Mexico Oil Spill

Contract - U.S. Dept. of Defense

Speech - U.S. Dept. of Defense

Transcript - U.S. Dept. of Defense

The Grill Sergeants

FBI Extra

NASA Breaking News

NASA Ames Research Center News and Features

NASACast Video

USGS Earthquake ShakeMaps

City of Toronto news releases, Emergency Medical Services

City of Toronto news releases, Fire Services

Speeches

Advertiser

City of Toronto news releases, Fire Services

Visitor Snapshot

Royalty Free Music.com News

RoyaltyFreeMusic.com Music Reviews

Automobile RSS Feed

Speed and Accuracy Statement

The information you find here is in the form of raw data, usually delivered via RSS feeds. The information is delivered via website in the most rapid manner possible. Usually this is the manner of delivery of information to media. Therefore, this service gets the audience information to the public more rapidly then any media outlet that has to re-write the information for their email club or SMS feeds.

In some cases, cases, from time to time, updates and correctons are offered by the authors of this information, Motioncenter.info is not responisble for the content of RSS feeds, press releases, or any other content. The content of the information presented is the responsiblity of the producer of the content.

There are many reasons for presenting the information as the page does. The public really never has had a view of the raw data before now. Most cases we see news packaged, polished and prioritized. This blog network offers a wide audience a variety of news, some of it is produced by Motioncenter and some by the government or other sources.

Read what you like, ignore what doesn't interest you, but at least Motioncenter doesn;t tell you what the news is, you choose.

Material Connection Disclosure

You should assume that the owner of this website has an affiliate relationship and/or another material connection to the providers of goods and services mentioned on this site and may be compensated when you purchase from a provider. You should always perform due diligence before buying goods or services from anyone via the internet or offline. THIS IS A BLOG. A NON-COMMERCIAL WEBPAGE At no time does commerce transact on this site. If it had then it would require a Secure Sockets Layer certificate and a merchant account. Being a non-commercial site there are some licensing privledges that this site will participate in. Mystuffnow is an online radio station broadcasting twenty four hours daily. This station can be bet described as a hybrid format of adult contemporary, international and ad popular music. In a sense it may, be compared to compared random radio format, but mystuffnow has three dedicated day parts. These day parts include a morning, evening and overnight separate music selection. The morning and afternoon have a selection of classic rock and current hot hits. To make the station more unique a new track, or tracks from the overnight day part have been added to make the station stand out from traditional stations that broadcast locally. The overnight day part is called “After Hours” and mimics the general principals of a quiet storm programming style where as there are fewer commercials and the music is more adult in nature, not just in lyrics but the music is more unique, offering international and slower tracks. This is meant for relaxation or whatever you may be doing in the late night hours. This station is run by computerized traffic software. At any moment a live deejay can broadcast and a morning show or news programming is possible, all playlists are run automatically. One positive of this is the fact that the software ensures that all artists get paid their royalties and this station avoids any fines for digital media issues. Update: Mystuffnow is currently off the air.

No Endorsement Statement

No endorsement is implied nor should it be inferred. No government agency, or organization has endorsed Motioncenter.Info. Motioncenter.info is a media organization with a mission of offering unbiased information as it becomes available, without any form of bias.

Privacy Policy

This is a website run by Group Speeddog Results Marketing, L.L.C... We take our readers privacy very seriously. Promotions through Third Party Merchants While this site is not endorsed or owned by any of the third party merchants appearing on this site, this site may at times receive various types of compensation when a viewer makes a purchase or clicks on a link appearing on this site. This site is not responsible for any claims or warranties associated with any third-party merchant link or website. This site does not directly collect any information regarding its viewers without your prior knowledge and permission; nor does it share their information with third-party vendors or merchants . It is not now, nor ever will be, our practice to sell your information to any third-party under any circumstance. We use third-party advertising companies to serve ads when you visit our website. These companies may use information (not including your name, address, email address, or telephone number) about your visits to this and other websites in order to provide advertisements about goods and services of interest to you. Google Advertising Cookie and Privacy Policies What is the DoubleClick DART cookie? The DoubleClick DART cookie is used by Google in the ads served on the websites of its partners, such as websites displaying AdSense ads or participating in Google certified ad networks. When users visit a partner’s website and either view or click on an ad, a cookie may be dropped on that end user’s browser. The data gathered from these cookies will be used to help better serve and manage ads on the publisher’s site(s) and across the web. *Google, as a third party vendor, uses cookies to serve ads on your site. *Google’s use of the DART cookie enables it and its partners to serve ads to your users based on their visit to your sites and/or other sites on the Internet. *Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy.