The sealed indictment from May 19th of Jamie Boye, Eric Cusimano, and Jessica Cusimano was unsealed today. Thanks to Promotion Stock Secrets for uploading it (PDF). See my post yesterday about the indictment. I ran the PDF file through an online OCR and the full text (with some errors most likely) is below:
Case 1:14-mj-00069-HKS Document 1 Filed 05/19/14 Page 1 of 21
AO 91 (Rev. 02/09) Criminal Complaint
United States District Court
for the
Western District of New York
United States of America
v.
Case No. 14-M- tog
ERIC CUSIMANO,
JAMIE BOYE, and C•i, • – •• -• ,:,, ,:-..
. e,0 – ,…—– – . 7-1-7″^.•.,. ‘… ‘ ‘•
JESSICA CUSIMANO Aj”’,:fs” * ‘f .- • ”’`..,,,, ‘.. .4\
Defendant (-) f nlett, 19, ,,,L 0/4/
,.
CRIMINAL COMPLAINT
I, the complainant in this case, state that the following is true to the best of my knowledge and belief.
(1) From on or about September 19, 2008, to on or about November 21, 2011, in the Western District of
New York, and elsewhere, ERIC CUSIMANO and JAMIE BOYE, the defendants, willfully and
knowingly, directly and indirectly, by use of the means and instrumentalities of interstate commerce, the
mails and the facilities of national securities exchanges, in connection with the purchase and sale of
securities, did use and employ, and cause to be used and employed, and did aid and abet the use and
employment of, manipulative and deceptive devices and contrivances, in violation of Title 17, Code of
Federal Regulations, Sections 240.10b-5, by: (a) employing devices, schemes, and artifices to defraud;
(b) making untrue statements of material fact and omitting to state material facts necessary in order to
make the statements made, in the light of the circumstances under which they were made, not
misleading; and (c) engaging in acts, practices and courses of business which operated and would
operate as a fraud and deceit upon persons, to wit, ERIC CUSIMANO and JAMIE BOYE, the
defendants, participated in pump and dump schemes by touting various penny stock securities;
all in violation of Title 15, United States Code, Sections 78j(b) and 78ff; Title 17, Code of Federal
Regulations, Sections 240.10b-5 and 240.10b5-2; and Title 18, United States Code, Section 2.
(2) On or about July 2, 2011, in the Western District of New York, ERIC CUSIMANO and JESSICA
CUSIMANO, and on or about November 16, 2009, in the Western District of New York, JAMIE
BOYE, knowingly engaged and attempted to engage in monetary transactions by, through, and to
financial institutions, affecting interstate and foreign commerce, in criminally derived property of a value
greater than $10,000, that is, deposits, withdrawals, transfers, and exchanges described below of United
States currency, funds, and monetary instruments in the amounts specified below, such property having
been derived from a specified unlawful activity, that is, securities fraud in violation of Title 15, United
States Code, Sections 78j(b) and 78ff, Title 17, Code of Federal Regulations, Sections 240.10b-5 and
240.10b5-2, and Title 18, United States Code, Section 2; wire fraud in violation of Title 18, United
Case 1:14-mj-00069-HKS Document 1 Filed 05/19/14 Page 2 of 21
States Code, Sections 1343 and 2; and conspiracy to commit securities fraud and wire fraud in violation
of Title 18, United States Code, Section 371;
all in violation of Title 18, United States Code, Section 1957 and 2.
This Criminal Complaint is based on these facts:
El Continued on the attached sheet.
Complainant’s signature
Michael K. Klimczak, Special Agent, IRS-CI
Printed name and title
Sworn to before me and signed in my presence.
Date: May / 2014 ( Judge’s signa ire
H. KENNETH SCHROEDER, JR.
City and State: Buffalo, New York United States Magistrate Judge
Printed name and title
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Case 1:14-mj-00069-HKS Document 1 Filed 05/19/14 Page 3 of 21
AFFIDAVIT IN SUPPORT OF CRIMINAL COMPLAINT
I, Michael K. Klimczak, being duly sworn, depose and say:
1. I am a Special Agent with Internal Revenue Service, Criminal Investigation
(IRS-CI) and have been so employed for approximately 12 1/2 years. I am currently assigned
to the New York Field Office, Buffalo Post of Duty to investigate crimes within the Western
District of New York. As part of my official duties, I investigation allegations of violations
of Federal criminal law, including statues that prohibit fraud and money laundering.
2. I make this affidavit in support of the annexed criminal complaint charging
ERIC CUSIMANO (“CUSIMANO”) and JAMIE BOYE (“BOYE”) with securities fraud,
in violation of Title 15, United States Code, Sections 78j(b) and 78ff; Title 17, Code of
Federal Regulations, Sections 240.10b-5 and 240.10b5-2; and Title 18, United States Code,
Section 2. This affidavit is also made in support of the annexed criminal complaint charging
CUSIMANO, JESSICA CUSIMANO, and BOYE with money laundering by knowingly
engaging in monetary transactions in criminally derived property of a value greater than
$10,000, such property having been derived from a specified unlawful activity in violation of
Title 18, United States Code, Section 1957 and 2.
3. The statements made in this affidavit are based upon my investigation,
information obtained from the Financial Industry Regulatory Authority (“FINRA”), which
is the largest independent securities regulator in the U.S., as well as my training and
experience as a Special Agent with IRS-CI. Because this affidavit is submitted for the
Case 1:14-mj-00069-HKS Document 1 Filed 05/19/14 Page 4 of 21
purpose of a criminal complaint, I have not included each and every fact known to me
concerning this investigation. I have set forth only the facts that I believe are necessary to
establish probable cause to believe that CUSIMANO, BOYE, and JESSICA CUSIMANO
have violated securities fraud and money laundering statutes.
4. This investigation involves a scheme generally referred to as a “pump and
dump” stock fraud scheme. A pump-and-dump stock fraud scheme is a scheme designed to
fraudulently inflate the prices of publically traded stocks of companies, generally stocks of
companies with low stock prices (known as “penny stocks”), through a variety of fraudulent
and misleading statements and practices that are intended to deceive investors into believing
that prices at which they purchased and sold the penny stocks were determined by the
natural interplay of supply and demand, not rigged by manipulators. The time frame by
which a stock is pumped and then dumped is known as a campaign.
5. The investigation has focused on the operation of a stock fraud scam
involving CUSIMANO and BOYE, who touted publicly traded penny stocks by issuing and
publishing newsletters associated with various websites they controlled, including
www.bestdamnpennystocks.com and www.trypennystocks.com. CUSIMANO owned and
operated PREMIRE CONSULTING, INC., which was a privately held corporation
organized under the laws of the State of Nevada, and BOYE owned and operated
IMMACULATE-SEO, LLC, which was a limited liability company organized under the
laws of the State of Nevada.
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6. Roles associated with pump-and-dump schemes are as follows:
a. One role is that of a promoter (“Promoter”), who is primarily
responsible for coordinating a given scheme to manipulate the price of
a targeted penny stock in exchange for compensation from company
management or another owner of the targeted stock who stood to
benefit from the manipulation. Once a targeted stock is identified and
funding acquired, a Promoter will coordinate efforts to pump up the
price of the stock in order to enable insiders in the scheme to sell at
maximum profit before the efforts to artificially inflate the price of the
stock collapsed.
b. Another role is that of a touter (“Touter”) who disseminates false or
misleading positive information to the marketplace through postings
on websites, message boards, “Twitter” accounts, and other online and
social media, among other means, in a coordinated manner to induce
recipients of the communications to buy the shares of targeted stocks.
Touts are coordinated at the direction of a Promoter (or at the Touter’s
own direction in those cases where a Promoter also served as a
Touter).
c. Another role is that of an account holder (“Account Holder”), who
opens up brokerage accounts and use, or allows the accounts to be
used by the co-conspirators, to buy and sell targeted stocks in large
volume, as well as to receive shares or cash as compensation to be
ultimately routed through their accounts to other participants in the
scheme. The use of multiple accounts to generate volume in targeted
stocks, and to receive and transfer proceeds of the scheme, enables the
participants in the scheme to minimize the risk of regulatory or law
enforcement suspicion falling upon them as a result of their ownership
of large amounts of shares of targeted stock, their high trading volume
in the targeted stock, and other indicia of participation in the scheme.
7. In general, a pump-and-dump worked as follows:
a. One or more Promoters will receive compensation from a client to run
a pump-and-dump scheme concerning a penny stock. Once the stock
is identified, a Promoter will recruit several Touters from a network
maintained by the Promoter to create mass communications that
would tout the targeted stock in a manner that appears coincidental,
but is actually timed to achieve the goals of the pump-and-dump
scheme by creating the illusion that independent analysts of penny
stock are coming to the same positive conclusion about the advisability
of purchasing targeted stock.
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b. A Promoter will also generate trading volume in a targeted stock by
recruiting several Account Holders from a network maintained by the
Promoter, by Touters, or by others, to, among other things, generate
volume in the targeted stock that will pump up the share price of the
stock by creating the illusion of broad public interest in the stock, and
by creating the false impression of competition in the marketplace for
shares of the targeted stock. Participants in the scheme can employ
trading methods that would inject misleading information into the
marketplace about the demand for, and price of, the targeted stock.
c. Often, particularly when company insiders are benefitting from the
scheme, the targeted company itself will issue a press release or other
public announcement of a purported positive development during the
period that the targeted stock is being pumped. These efforts will be
coordinated with the efforts of Touters such that the investing public
will be left with the false impression that there is genuine interest from
both the investing public and from independent analysts of penny
stocks, and that there is a legitimate reason for the targeted company’s
stock to rise.
d. This combination of activities, in whole or in part, is intended to trick
unsuspecting investors into trading on the basis of the fraudulent and
misleading information that participants in the scheme had injected
into the marketplace, thereby increasing the upward momentum of the
stock. Particularly where all of the means and methods described
above were employed effectively and in coordination, this inflow of
money from the unsuspecting investing public would sufficiently pump
up the price of the shares of the targeted stock to permit those funding
the scheme to achieve their profit objectives. At that point, the
Promoter(s) responsible for the scheme with respect to that stock
would notify insiders that it was time to sell, or “dump,” the targeted
stock. Insiders—Promoters, Touters, and Account Holders among
them—would then, among other things, sell their shares and stop
trading in the stock, placing downward pressure on share prices and
causing trading volume to plummet, and Touters would often cease
continuing to promote the targeted stock. This combination of events
would tend to cause the price of a targeted stock whose price had been
successfully manipulated upwards by the scheme to decline, exposing
unsuspecting investors to significant losses.
8. A further mechanism used in a pump-and-dump scheme is to engage in
selective touting, whereby certain positive information regarding a targeted stock was
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initially sent to one group of investors, and then after a delay in time, generally one or two
days, that same positive information regarding the targeted stock was sent to subsequent
groups of investors at different times. This practice of selective touting is used to manipulate
the length and intensity of a pump-and-dump scheme in that with each subsequent release of
positive information regarding the targeted stock, new unsuspecting investors were brought
into the scheme. The subsequent groups of investors were never told that the positive
information they were being provided had in fact been supplied to other investors days
earlier, and often were the investors that sustained the most losses when the price of the
targeted stock plummeted.
SECURITIES FRAUD
9. On or about February 2, 2008, CUSIMANO registered the website
www.bestdamnpennystocks.com through GoDaddy.com, shopper number 13786933.
According to their website, GoDaddy.com is a privately held company that is primarily an
internet domain registrar and web hosting company. An email account associated with this
website is staff@bestdamnpennystocks.com.
10. On or about October 22, 2008, BOYE registered the website
www.trypennystocks.com through GoDaddy.com, shopper number 21506413. An email
account associated with this website is staff@trypennystocks.com.
11. According to records obtained from the Nevada Department of State and
Nevada Corporate Headquarters, Inc., a company that assists individuals with
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incorporating businesses in the state of Nevada, CUSIMANO incorporated PREMIRE
CONSULTING, INC., 30 Lakeview Drive, Apt. 9, Lakewood, NY 14750 on or about July
17, 2008. CUSIMANO lists his email address as staff@bestdamnpennystocks.com.
12. According to records obtained from the Nevada Department of State and GG
International, a company that assists individuals with incorporating businesses in the state
of Nevada, BOYE registered IMMACULATE-SEO, LLC, on or about January 28, 2009.
BOYE is listed as the sole member, with an address of 20 Lakeview Drive, Apt. 9,
Lakewood, NY 14750.
13. According to their website, iContact Corporation is an international online
service provider of email marketing and social media marketing to small, mid-sized, and
premier businesses. Records obtained from iContact Corporation indicated that account
number 323895 was created on or about September 09, 2008. The email address associated
with this account is staff@bestdamnpennystocks.com.
14. Based on an interview of BOYE, he and CUSIMANO worked together by
doing advertising for small cap companies. They obtained clients, also known as
subscribers, through advertising on internet websites such as Google. CUSIMANO and
BOYE conducted search engine optimization for the websites he registered so that his
websites would be more likely to be listed when an internet user conducted a search for
penny stocks. Interested subscribers could sign up to obtain stock alerts from
www.bestdamnpennystocks.com or www.trypennystocks.com. When a subscriber signed
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up with CUSIMANO or BOYE’s website, they were added to a list of subscriber contacts
maintained through CUSIMANO and BOYE’s iContact Corporation account.
15. Included with the records received from iContact Corporation were emails
sent to thousands of CUSIMANO’s subscribers between September 2008 and November
2011 touting at least twenty seven (27) stocks. Records received from GoDaddy for the
staff@bestdamnpennystocks.com email indicate that CUSIMANO was a subscriber of the
www.trypennystocks.com website, and that BOYE, using the email
staff@trypennystocks.com was also touting some of the stocks as CUSIMANO during the
same time periods. One of those stocks touted was Cardiac Network Inc. (ticker symbol
CNWI), which occurred while CUSIMANO and BOYE resided in the Western District of
New York.
16. Information was obtained by a cooperating witness (herein after known as
CW1) regarding pump and dump campaign utilizing stock CNWI. According to CW1, the
scam was facilitated by William Goldstein and David Levy (Promoters), Peter Veugler
(account holder), and Donna Levy and CUSIMANO. CW1 met with these individuals in
New York City in approximately the summer of 2009 to set up the CNWI campaign. At
the meeting, CUSIMANO explained his stock touting operation.
17. CW1 explained that CUSIMANO had approximately 60,000 to 70,000
subscribers to his website, www.bestdamnpennystocks.com. CUSIMANO painted a picture
to his subscribers by putting out news that would help the stock increase in value. For
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Case 1:14-mj-00069-HKS Document 1 Filed 05/19/14 Page 10 of 21
CNWI, CUSIMANO explained what kind of news he needed from Goldstein, David Levy,
and Donna Levy in order to get his subscribers to act on his email notifications. According
to CW1, the news CUSIMANO used for the campaign was “manufactured for the pump
and dump.”
18. CW1 told agents that the manner in which CUSIMANO put out his email
blasts was intended solely to pump the value of the stock. CUSIMANO explained how this
worked at the meeting in New York City. Once a campaign started, CUSIMANO would
send out three separate email blasts to three separate lists of subscribers over approximately
three days. The purpose of this was to drive up the price of the stock. According to CW1,
the subscribers included in the first email blast sent by CUSIMANO would start purchasing
the stock CUSIMANO was touting immediately. All of that buying would increase the
value of the stock. The subscribers that received CUSIMANO’s second email blast a day or
two later would purchase the stack at an inflated price due to the previous buying of the
stock. The subscribers that received CUSIMANO’s third email blast a day or two after the
second group were buying the stock at a highly inflated prices, prices those investors could
never recoup their money from. After the third email blast, CUSIMANO stopped sending
email blasts because the campaign ended causing the value of the stock to plummet leaving
investors who hadn’t sold their stock with huge losses.
19. According to the iContact records, the complete CNWI campaign ran from
September 2, 2009 to September 22, 2009. This included the primer email notifying
subscribers that a new recommended stock will be named soon (and variations of that same
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primer), an email naming the new stock, distribution of news through press releases to get
subscribers to act on the stock, closing notifications each day reflecting the jump in stock
price for that day, and email primers for the next stock to be touted. The following chart
summarizes CUSIMANO’s newsletter distributions from www.bestdamnpennystocks.com
for CNWI:
Day One
Date Time Contents Recipients
09/02/200913:12:12Primer 28,800 Group A
09/02/200919:09:07CNWI Named Group A
09/02/200922:59:09Press Release 1 Group A
Day Two
Date Time Contents Recipients
09/03/200914:20:43Primer (v2) —2,528 Group B
09/03/200918:40:04CNWI Named (v2) Group B
09/03/200919:07:18CNWI Close Notification Group A
Da Three
Date Time Contents Recipients
09/04/200911:12:50Press Release 1 Group B
Day Four
Date Time Contents Recipients
09/07/200921:43:33Primer (v3) —436 Group C
09/07/200923:08:44Still CNWI Group A
09/07/200923:26:46Still CNWI (v2) Group B
Day Five
Date Time Contents Recipients
09/08/2009 9:04:51CNWI Named (v3) Group C
Day Six
Date Time Contents Recipients
09/09/2009 5:59:07Press Release 2 (KP) Group A
09/09/200923:47:31Close notification Group A
09/09/200923:59:40Close notification (v2) Group C
Day Seven
Date Time Contents Recipients
09/11/2009 3:27:35Close notification Group A
09/11/200911:24:46100% Buy Rating Group A
09/11/200911:52:17100% Buy Rating (v2) Group C
Day Eight
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Case 1:14-mj-00069-HKS Document 1 Filed 05/19/14 Page 12 of 21
Date Time Contents Recipients
09/12/2009 2:02:51Congrats and Primer Group A
09/12/2009 2:13:58Congrats and Primer (v2) Group C
09/12/200916:23:36Pick Still CNWI Group A
09/12/200916:54:52Primer (v4) 2,500 Group D
Day Nine
Date Time Contents Recipients
09/13/2009 8:53:30CNWI Named (v4) Group D
09/13/200918:37: 7100% Buy Rating (v3) Group D
Day Ten
Date Time Contents Recipients
09/14/200923:33:31Healthy Pull Back Group A
Day Eleven
Date Time Contents Recipients
09/15/200920:53:52Solid Base still 100% Group A
Day Twelve
Date Time Contents Recipients
09/21/200917:16:59CNWI Congrats and Primer Group A
(EMGE)
Day Thirteen
Date Time Contents Recipients
09/22/200914:29:34CNWI Apology and Primer Group D
(EMGE)
20. Based on Daily Closing Prices and Share Volume comparisons for CNWI
received from FINRA, the share price on September 1, 2009, was approximately $.14 with
very little volume traded. On September 2, 2009, the day CUSIMANO named CNWI as
his new recommended stock to Group A (1st list of subscribers receiving email notifications),
the volume of stock traded increased slightly and the share price increases to $.17. By
September 3, 2009, the day CUSIMANO named CNWI to Group B (2′d list of subscribers
receiving email notifications), the stock volume traded increased significantly with the share
price increasing to $.26. By the time the third email is sent to Group C (3rd list of subscribers
receiving email notifications) on September 8, 2009, share price was at approximately $.30.
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The stock price peaked at almost $.80 per share on or about September 12, 2009, and
thereafter plummeted to $.35 by September 17, 2009 and $.21 by September 23, 2009.
21. According to GoDaddy records, BOYE participated in the pump and dump
of CNWI by issuing email blasts using staff@trypennystocks.com to his own subscribers.
BOYE’s first email was sent on September 3, 2009, at which he issued a primer email that
named the stock. Thereafter, from September 4, 2009 to September 15, 2009, BOYE issued
approximately 12 emails to subscribers touting the CNWI stock.
22. CW1 recalled watching Veugler and Goldstein trading their shares of CNWI
stock (the dump) and realized what they were doing was a fraud.
23. According to the disclaimer on the bottom of the email notifications
CUSIMANO sent to his subscribers, CUSIMANO was compensated $150,000 cash from a
non-controlling third party to tout CNWI. The disclaimer on the bottom of the email
notifications BOYE sent to his subscribers indicated that he was compensated $75,000 cash
from an unlisted source to tout CNWI.
24. Responses from CUSIMANO’s subscribers to the
staff@bestdamnpennystocks.com stock notifications contain complaints from various
subscribers regarding being defrauded by CUSIMANO due to losing money based on
recommendations made by CUSIMANO.
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25. I reviewed iContact records and email notifications sent by CUSIMANO to
subscribers using staff@bestdamnpennystocks.com, and Daily Closing Prices and Share
Volume comparisons received from FINRA. The following stocks touted by CUSIMANO
have the same characteristics as CNWI:
Date Range Company Ticker Symbol
September 19, 2008 to Zippi Networks, Inc. ZIPI
October 01, 2008
October 06, 2008 to Toro Ventures, Inc. TORO
October 07, 2008
October 10, 2008 to Russell Industries, Inc. RUSL
October 13, 2008
October 17, 2008 to Permanent Technologies, Inc. PERT
October 19, 2008
October 22, 2008 to Titan Resources International TNRI
October 24, 2008 Corporation
October 30, 2008 to Zippi Networks, Inc. ZIPI
November 06, 2008
November 07, 2008 to Healthy Coffee International, HCFI
November 14, 2008 Inc.
November 19, 2008 to Greencheck Technology, Inc. GCHK
November 20, 2008
December 21, 2008 to IDGlobal Corporation IDGC
January 10, 2009
January 30, 2009 to Banneker Inc. BANI
February 11, 2009
April 06, 2009 to United Treatment Centers, Inc.UTRM
April 13, 2009
June 17, 2009 to Enhance Skin Product, Inc. EHSK
June 18, 2009
September 21, 2009 to Emergent Health Corp. EMGE
September 25, 2009
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October 13, 2009 to Alternative Energy ADEC
October 14, 2009 Development Corp.
October 27, 2009 to Total Nutraceutical Solutions, TNUS
November 02, 2009 Inc.
December 01, 2009 to SMC Entertainment, Inc. SMCE
December 16, 2009
January 05, 2010 to Eco Building Products, Inc. ECOB
January 11, 2010
March 03, 2010 to MedCareers Group, Inc. MCGI
March 07, 2010
March 23, 2010 to SMC Entertainment, Inc. SMCE
March 24, 2010
April 05, 2010 to Emerging World Pharma, Inc. EWPI
April 13, 2010
January 11, 2011 to Crosswind Renewable Energy CWNR
January 28, 2011 Corporation
February 09, 2011 to Raptor Technology Group, RAPT
February 17, 2011 Inc.
May 23, 2011 to High Plains Gas, Inc. HPGS
June 14, 2011
September 13, 2011 to Greenway Design Group, Inc. GDGI
September 15, 2011
October 19, 2011 to High Plains Gas, Inc. HPGS
October 20, 2011
November 17, 2011 to Greenway Design Group, Inc. GDGI
November 21, 2011
In addition, I have reviewed email notifications sent by BOYE to subscribers using
staff@trypennystocks.com, which has revealed that of the twenty-six (26) stocks listed
above, BOYE simultaneously touted the following fifteen (15) stocks promoted by
CUSIMANO, which indicates a targeted and joint pump and dump scheme to affect the
volume and price of shares traded:
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Date Range Company Ticker Symbol
January 30, 2009 to Banneker Inc. BANI
February 7, 2009
April 02, 2009 to United Treatment Centers, Inc. UTRM
April 15, 2009
June 17, 2009 to Enhance Skin Product, Inc. EHSK
June 18, 2009
September 21, 2009 to Emergent Health Corp. EMGE
September 23, 2009
October 12, 2009 to Alternative Energy ADEC
October 19, 2009 Development Corp.
October 29, 2009 to Total Nutraceutical Solutions, TNUS
November 02, 2009 Inc.
December 08, 2009 to SMC Entertainment, Inc. SMCE
December 15, 2009
January 06, 2010 to Eco Building Products, Inc. ECOB
January 11, 2010
March 02, 2010 to MedCareers Group, Inc. MCGI
March 10, 2010
March 23, 2010 to SMC Entertainment, Inc. SMCE
March 25, 2010
April 05, 2010 to Emerging World Pharma, Inc. EWPI
April 08, 2010
January 07, 2011 to Crosswind Renewable Energy CWNR
January 20, 2011 Corporation
February 08, 2011 to Raptor Technology Group, RAPT
February 13, 2011 Inc.
May 23, 2011 to High Plains Gas, Inc. HPGS
June 15, 2011
September 08, 2011 to Greenway Design Group, Inc. GDGI
September 15, 2011
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26. According to the disclaimer on the bottom of the email notifications
CUSIMANO sent to his subscribers, CUSIMANO was compensated approximately
$4,268,000 to tout the above named twenty-six (26) stocks. In his disclaimers, CUSIMANO
typically referred to the entities that were compensating him as “third parties.” According
to the disclaimer on the bottom of the email notification BOYE sent to his subscribers,
BOYE was compensated approximately $980,000 to tout the above named fifteen (15)
stocks.
27. Another cooperating witness that worked for CUSIMANO and BOYE
(herein after referred to as CW2) provided information on CUSIMANO and BOYE’s stock
touting operation. According to CW2, BOYE stated that he was working for CUSIMANO
“designing websites.” After CW2 got to know them, CUSIMANO and BOYE referred to
their business as a “pump and dump” instead of “stock speculating.”
28. CW2 specifically told the agents about a campaign involving the stock BANI
that started in approximately February 2009. According to CW2, this was done out of
CUSIMANO’s apartment at the Fairmont Hills Apartments located in Lakeview, NY.
CW2 said that there was a significant amount of manipulation in the BANI campaign so
that CUSIMANO and Donna Levy could sell the shares of BANI stock they owned prior to
CUSIMANO’s subscribers. According to CW2, CUSIMANO and Levy made millions of
the BANI campaign.
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29. CUSIMANO maintains bank accounts for PREMIRE CONSULTING INC.
at Wells Fargo Bank. CUSIMANO opened account number 9092478149 in the name
PREMIRE CONSULTING INC. on July 25, 2008. He is the sole signor on the account.
Analysis of the account reflects a total of $1,831,985 was deposited into the account, mostly
through wire transfers received by third parties. On or about May 26, 2009, CUSIMANO
ceased using this account and transferred the $793,888 balance to Wells Fargo account
number 8174859929.
30. CUSIMANO opened account number 8174859929 in the name PREMIRE
CONSULTING INC. on May 26, 2009. He is the sole signor on the account. Analysis of
the account reflects that, between May 26, 2009, and January 27, 2012, a total of $6,089,722
was deposited into the account, mostly through wire transfers received by third parties.
31. According to BOYE, he was paid $20,000 to $30,000 to advertise companies
to his subscribers’ lists. His business bank account is located at M&T Bank. BOYE opened
account number 9849203931 in the name of IMMACULATE SEO LLC on July 15, 2008 at
a branch located in Orchard Park, NY. He is the sole signor on the account. Analysis of
the account reflects a total of $1,376,163.01 was deposited into the account, mostly through
wire transfers received by third parties. The deposits included five wire transfers totaling
$27,750 from PREMIRE CONSULTING, INC.
16
Case 1:14-mj-00069-HKS Document 1 Filed 05/19/14 Page 19 of 21
MONEY LAUNDERING
32. On or about the dates discussed below, in the Western District of New York,
and elsewhere, CUSIMANO utilizing the business he incorporated, PREMIRE
CONSULTING, INC., BOYE utilizing the business he incorporated, IMMACULATE-
SEO, LLC, and JESSICA CUSIMANO, knowingly engaged in monetary transactions by,
through, and to financial institutions, affecting interstate and foreign commerce, in
criminally derived property of a value greater than $10,000, that is, deposits, withdrawals,
transfers, and exchanges described below of United States currency, funds, and monetary
instruments in the amounts specified below, such property having been derived from a
specified unlawful activity, that is, securities fraud in violation of Title 15, United States
Code, Sections 78j(b) and 78ff; Title 17, Code of Federal Regulations, Sections 240.10b-5
and 240.10b5-2; and Title 18, United States Code, Section 2.
33. While visiting the Western District of New York, specifically Lakewood,
New York, from their residence in Texas during the summer of 2011, CUSIMANO and
JESSICA CUSIMANO purchased a 2011 Bennington pontoon boat from Snug Harbor
Marina for $48,564.63. In addition to an $8,000 cash deposit made on the day of the sale,
CUSIMANO paid the remaining balance of $40,564.63 utilizing check no. 1074 drawn on
Wells Fargo Bank, N.A. account no. 8174859929 dated 07/02/2011. This account is in the
name of PREMIRE CONSULTING INC. and CUSIMANO. At the time CUSIMANO
wrote the check, his sole source of income was the pump and dump stock fraud scheme
detailed above.
17
Case 1:14-mj-00069-HKS Document 1 Filed 05/19/14 Page 20 of 21
34. In furtherance of the money laundering scheme, the 2011 Bennington
pontoon boat was registered in JESSICA CUSIMANO’s name, using a recently obtained
New York State driver’s license listing her current residence as 169 Front Street, Lakewood,
NY 14750, which was the address of the lakeside cabin they rented while visiting from
Texas.
35. JESSICA CUSIMANO obtained insurance for the 2011 Bennington Pontoon
boat from Progressive Direct Insurance Company on 07/02/2011, policy number 18884772-
0. On the application for the insurance, JESSICA CUSIMANO listed her maiden name,
JESSICA LOPEZ, and listed her current residence as 169 Front Street, Lakewood, NY
14750, and listed her marital status as “single.”
36. On or about November 16, 2009, BOYE wrote a check in the amount of
$49,154.31 drawn on M&T Bank account 9847916138 (Jaime Boye) payable to Robert Basil
Chevrolet as payment for a 2007 Cadillac Escalade. At the time BOYE wrote the check, his
sole source of income was the pump and dump stock fraud scheme detailed above.
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Case 1:14-mj-00069-HKS Document 1 Filed 05/19/14 Page 21 of 21
37. Based upon the foregoing, your affiant respectfully submits that there is
probable cause to believe that ERIC CUSIMANO and JAMIE BOYE have committed
securities fraud in violation of Title 15, United States Code, Sections 78j(b) and 78ff; Title
17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-2; and Title 18, United
States Code, Section 2; and that ERIC CUSIMANO, JESSICA CUSIMANO, and JAMIE
BOYE violated Title 18, United States Code, Section 1957 and 2.
Michael K. Klimczak, Specie 1 Agent
IRS-CI
Sworn to and subscribed to before me this
19′ day of May 2014.
HC7N. H. KENNETH SCHROEDER, JR.
UNITED STATES MAGISTRATE JUDGE
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