USA v. Altomare Doc 1 Filed 27 Sep13

8/12/2019 USA v. Altomare Doc 1 Filed 27 Sep13

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UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF FLORIDACASE NO :18 U.S.C. j 1341

15 U.S.C. j 78j(b)15 U.S.C. j 78ff(a)17 C.F.R. j 240.10b-518 U.S.C. j 218 U.S.C. j 981(a)(1)(C)UNITED STATES OF AM ERICAVS.

RICHARD ALTOM ARE,Defendant. /

INDICTM ENTThe Grand Jury charges that:

GENERAL ALLEGATIONSAt all times relevant to this Indictment:

Sunset Brands, Inc. (''SSBN'') was a Nevada comoration that purported to be asnancial services com pany which acquired and invested in real estate and antiquities.

SSBN'S common stock was publicly quoted on the Pink OTC M arkets,lnc., an inter-dealer electxonic quotation and trading system in the over-the-counter securities market commonlyreferred to as the ''Pink Sheets.''

3. Defendant RICHARD ALTOM ARE was a stock promoter for SSBN .4. lssuer Direct, a transfer agent based in Morrisville,North Carolina, acted as SSBN'S

transfer agent.

13-60240-CR-DIMITROULEAS/SNOW

Sep 26, 2013

TBCase 0:13-cr-60240-WPD Document 1 Entered on FLSD Docket 09/27/2013 Page 1 of 9


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COUNT 1M AIL FM UD(18 U.S.C. j 1341)1 . Paragraphs 1 through 4 of the General Allegations section of this Indictment are re-

alleged and incomorated by reference as if fully set forth herein.2. From in or around January 2013 through in or around M arch 2013, in Broward

County, in the Southern District of Florida, and elsewhere, the defendant,RICHARD ALTOM ARE,

did knowingly and with intent to defraud devise and intendto devise a scheme and artitsce to defraudand to obtain money and property by means of materially false and fraudulent pretenses,representations, and promises, knowing that the pretenses, representations,and promises were falseand fraudulent when made.

PURPOSE OF THE SCHEM E AND ARTIFICE3. Thepumose ofthe scheme and artifice was forltlcllAlm ALTOMARE to unjustly

emich himself by engaging in the fraudulent manipulation of SSBN'S stock by,among other things:(a) improperly inducing an individual to purchase shares of SSBN common stock in exchangefor compensation; (b) inducing the investing public to purchase shares of SSBN common stockbased on the artitscial trading volume and artificially inflated stock price; and (c) issuing pressreleases to induce investors to purchase shares of SSBN common stock at the artificially intlatedstock price.

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M ANNER AND M EANS OF THE SCHEM E AND ARTIFICEThe mnnnerrdmeansbywhichm cHAM ALToM AM soughtto accomplishthe object

of the scheme and artifice included,but was not Iimited to, the following:4. Beginning in or around January 2013, RICHARD

manipulating the public market for shares of SSBNsource (''the CS'')

common stock with an FBI confidentialALTOM ARE discussed

RICHARD ALTOM ARE discussed a pay-to-play scheme to artificiallyincrease the trading volum e and price for shares of SSBN com mon stock. Thereafter, RICHARDALTOM ARE participated in a series of telephone calls and meetings with the CS to plan,execute,and attempt to execute the schem e and artifict.

On oraboutM arch 7, 2013, RICH ARDALTOM ARE metwiththe CS to discussthe unlawful scheme. RICHARD ALTOM ARE proposed a false and fraudulent promotion toincrease the trading volum e and price for shares of SSBN common stock to give the investing

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public the false impression that SSBN'S stock was rising and that there was a public market forSSBN stock. RICHARD ALTOM ARE promised to compensate the CS with shares of SSBN toinduce his cooperation in the scheme. The false and fraudulent promotion was plarmed to coincidewith the issuance of SSBN press releases.

On or about M arch 8, 2013, RICHARD ALTOM ARE agreed to bolster theimproper buying program by agreeing to cause SSBN to issue one or more press releasesannouncing positive news about the company,which would be timed to follow and coincide withthe illegally induced purchasing by the CS. The purpose of the press releases was to give theinvesting public the false impression that the purchase of SSBN stock was induced by positive newsabout the company and to conceal the market manipulation scheme from regulatory authorities.

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7. On or about March 15, 2013, RICHARD ALTOM ARE m et with the CS inBroward County, Florida and provided the CS with an advance copy of an SSBN pressrelease describing an increase in the appraised value of SSBN'S assets.

8. On or about M arch 26, 2013, RICHARD ALTOM ARE issued and caused to beissued a press release on behalf of SSBN containing information which was previously non-public.EXECUTION AND ATTEM PTED EXECUTION OF THE SCHEM E AND ARTIFICE

9. On or about M arch 22, 2009, the defendant, RICHARD ALTOM ARE, for thepupose of executing and in furtherance of the scheme and artifice to defraud and to obtain m oneyand property by means of false and fraudulent pretenses, representations, and promises, didknowingly cause to be delivered certain mail matter by a private or commercial interstate canieraccording to the diredions thereon, namely, a stock certifcate for 70,000 free-trading shares ofSSBN sent via Federal Express to an address in W eston, Florida as kickback paym ent for thepurchase of securities, in violation of Title 18, United States Code, Sections 1341 and 2.

COUNTS 2-4SECURITIES FRAUD(15 U.S.C. j 78j(b) and 78ff(a);17 C.F.R. j 240.10b-5)

Paragraphs 1 though 4 of the General Allegations section of this Indictment are re-alleged and incoporated by reference as if fully set forth herein.

2. From in or around Janumy 2013 through in or around M arch 2013,in BrowardCounty, in the Southern District of Florida, and elsewhere, the defendant,

RICHARD ALTOM ARE,

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did knowingly, willfully, and unlawfully, by the use of means and instrumentalities of interstatecommerce, the m ails, and the facilities of national securities exchanges, directly and indirectly, useand employ manipulative and deceptive devices and contrivances in colmection with the purchaseand sale of securities, and: (a) employ a device, scheme and artifice to defraud; (b) make untruestatements of material facts and omit to state material facts necessary to make the statements made,in light of the circumstances under which they were made, not misleading; and (c) engage in acts,practices and courses of business which would operate as a fraud and deceit upon any person, inconnection with the purchase and sale of securities.

PURPOSE OF THE SCHEM E AND ARTIFICEThepupose ofthe scheme andartiicewas forltlclu ltD AtzrroMAM tounjustly

emich himself by engaging in m anipulative and deceptive trading practices in connection with thepurchase and sale of SSBN com mon stock.

M ANNER AND M EANS OF THE SCHEM E AND ARTIFICEParagraphs 4 through 9 of Count 1 are realleged and incorporated by reference herein.

as a description of the scheme and artifice.5. ln furtherance of the scheme and artifice, RICHARD ALTOM ARE used means and

instrumentalities of interstate commerce, including interstate wire communication facilities andprivate comm on carriers.

SECURITIES TM NSACTIONSOn or about the dates enumerated as to each count below, in Broward County, in the

Southern District of Florida, and elsewhere,the defendant, RICHARD ALTOM ARE, didknowingly, willfully, and unlawfully,by the use of means and instmmentalities of interstate

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commerce, the mails, and the facilities of national securities exchanges, directly and indirectly,useand employ manipulative and deceptive devices and eontrivances in conntdion with the purchaseand sale of securities, and: (a) employ a device, scheme and artifice to defraud; (b) make untruestatements of material facts and omit to state material facts necessary to make the statements made,in light of the circumstances under which they were made, not misleading; and (c) engaged in acts,practices and courses of business which would operate as a fraud and deceit upon any person, inconnection with the purchase and sale of securities, as more particularly described in each count setforth below:

CO UNT APPROX. DATE DESCRIPTION OF SECURITIES TRANSACTION

2 M arch 15, 2013 Purchase and sale of 2,150 shares ofSSBN common stock

3 M arch 26, 2013 Purchase and sale of 2,000 shares ofSSBN common stock4 M arch 26, 2013 Purchase and sale of 1,500 shares of

SSBN common stockln violation of Title 15, United States Code, Section 78j(b), Title 15, United States Code,

Section 78ff(a); Title 17, Code of Federal Regulations, Section 240.10b-5; and Title 18, UnitedStates Code, Stdion 2.

FORFEITURE(18 U.S.C. j 981(a)(1)(C))The allegations in Counts 1 through 4 of this lndictment are realleged and fully

incorporatedby reference herein forthe pumose of alleging forfeitureto the United States of Americaof certain property in which the defendant has an interest

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Upon conviction of any violation alleged in this lndictment, RICHARDALTOM ARE shall forfeit to the United States any property constituting, or derived from, anyproceeds which he obtained, directly or indirectly, as the result of such violation.

A1l pursuant to Title 18, United States Code, Section 981 (a)(1)(C), made applicable throughTitle 28, United States Code, Section 2461. and the procedures set forth at Title 21, United StatesCode, Section 853.

A TRUE BILL

Fokk soxt & Xb a

W IFREDO A. FERRERUNITED STATES AT ORNEY)

%

ALEJANDkO 0. SOTOASSISTANT UNITED STATES ATTORNEY



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UNITED STATES DISTRICT COURTSOUTHERN DISTRICT OF FLORIDAUNITED STATES OF AMERICAVS.RICHARD ALTOMARE,

Defendant. /

CASE NO.CERTIFICATE OF TRIAL ATTORNEY*

Superseding Case Information:

Court Division: (select One) New Defendantls)Number of New DefendantsMiami Ke W est Total number of countsx FTu w): FTpYes - No -

I do hereby cedify that:I have carefully considered the allegations W the indictm n ,the number Qf defendants, the number ofrobable witnesses and the Iegal complexlties of the Indlctment/lnformabon attached hereto.I am pware that the information supplied gn thij qtaterpent will be relied upon vthe Ju qes of thisthe Speed- Trial Act,oudln setti ntheircalendarsand schedullng crlmlnaltrlals underthe mandate ofCl Section 3161 .itle 28 U.S.Interpreter: (Yes or Nj Mnist Ianguage and/or dialecThis case will take A days for the padies to try.Please check appropriate category and Npe of offense Iisted below:(Check only one)0 to 5 days6 to 10 days11 to 20 days21 to 60 days61 days and over

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6. Has this case been previously filed in this District Coud? (Yes or No) NnIf yes:Judge: Case No.(Attach copy 9f dispositive grdejas a complalnt been filed In thls matter? (Yes or No) NnIf yeq:Maglstrate Case No.Related Misc llaneous numbers:Defendantls) ln federal custody as ofDefendantts) In state custody as ofRule 20 from the District ofIs this a potential death penalty case? (Yes or No)

(Check only one)PettyM inorMisdem.Felony

Does this case or ginate from a matter pending in the Northern Region of the U.S. Attorney's Office priorG03? Yes R Noo October 14, 2

Does this case oriqinate from a matter pending in the Central egion of the U.S. Attorney's Office priorD07? Yes X Noo September 1 , 2

A l f' a n o ..S oSISTANT UNITED STATES ATTORNEYSFlorida Bar No./coud No. 0172847

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*penalty Sheetts) attached REV 4/8/08



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UNITED STATES DISTRICT COURTSOUTH ERN DISTRICT OF FLORIDAPENALTY SHEET

Defendant's Nam e: RICHARD ALTOM ARECase No:Count : 1M ail FraudTitle 18. United States Code. Section 1341*Max. Penalty: Twenty (20) years' imprisonmentCounts : 2-4Securities FraudTitle 15. United States Code. Section 78i(b) and 78ff(a1' Title 17 C.F.R $ 240. 10b-5

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*M ax. Penalty: Twentytzo) years' imprisonment as to each countCount : 4

Count :


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USA v. Altomare Doc 1 Filed 27 Sep13

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