The U.S. Securities and Exchange Commission is alleging a Vancouver-based stock promoter flipped his home to conceal assets while facing civil stock fraud charges in Boston in 2022.
On Feb. 28 the SEC filed a civil claim in B.C. Supreme Court against Bradley Moynes, his companies and spouse Robyn Moynes. The American agency is seeking a declaration that Robyn Moynes’ home is to be held in trust for the United States, as well as recognition from the court that Bradley Moynes and his firms collectively owe the SEC US$3.4 million via a settlement agreement.
According to the claim, Moynes became the registered owner of 1190 East 15th Ave. in Vancouver on Dec. 20, 2019, paying $1.92 million.
In June 2022, Moynes was charged in civil proceedings with multiple counts of securities fraud related to a pump-and-dump fraud scheme.
But on Oct. 11, 2022, Moynes sold his home for $2.25 million. The the next day Robyn Moynes bought 1750 East 15th Avenue for $1.63 million.
This, the SEC alleges, was an “attempt to delay, hinder and defraud the United States of its lawful remedies arising from the U.S. proceedings.”
The SEC claims Moynes intended to put his assets “beyond the reach of the United States” and that Robyn Moynes “was aware of this intention.”
The SEC calls the conveyancing “fraudulent.”
Moynes, his spouse and the companies have yet to respond to the claim. BIV reached out to Moynes’ U.S. attorney for comment but did not receive a response in time for publication.
Moynes, 54, a former Vancouver investment adviser turned cryptocurrency promoter, was accused by the SEC of working with offshore shell facilitator Fred Sharp, a former Vancouver lawyer who the SEC claims “masterminded” a massive stock fraud network involving over $1 billion worth of stock transactions across more than 100 American and Canadian companies listed on U.S. exchanges, between 2011 and 2019.
American authorities claimed Sharp and his “Sharp Group” employees based in Metro Vancouver concealed beneficial ownership of shares of public companies via a network of offshore shell companies and overseas trading platforms; and that Sharp communicated via a special encrypted network.
Sharp also faces criminal charges for his alleged part, although he has already been found liable in civil proceedings and owes US$52.9 million.
According to the SEC complaint, filed in a Boston federal court, Moynes became a Sharp Group client in March 2014, when Moynes was president of Nevada-based Formcap Corp. His two B.C. companies, Digatrade Financial Corp. and Vancap Ventures, were named co-defendants.
Phone records obtained by the commission allege to show Sharp dividing 95 per cent of tradable Formcap shares into blocks of less than five per cent held by the offshore companies, thus avoiding reporting requirements and scrutiny by the foreign brokerage firms, which held the shares, as well as transfer agents, who are supposed to oversee filings.
Moynes proceeded to “strategically issue” press releases and fund promotions about the company (the “pump”), while allegedly directing Sharp to sell the shares (the “dump”) and put the proceeds into a Canadian company named VancapVentures, which is solely owned by Moynes.
The SEC claimed Moynes and Sharp made US$327,000 in profits from illicit Formcap trades.
Moynes alleged to have then connected with New York lawyer and Mexican citizen Luis Carillo, who is alleged to have orchestrated a promotional campaign for Digatrade via a high-pressure call centre – or boiler room – based in Medellin, Colombia.
While Carillo faces criminal charges, the boiler room was also allegedly operated by Frank Biller, who has also been charged by the SEC in civil proceedings.
Biller was convicted in B.C. of criminal fraud and theft in 2005 for his participation in the high-profile B.C.-based Eron Mortgage Corp. Ponzi scheme through the late 1990s.
By February 2018, Moynes and his associates sold 24.3 million shares of Digatrade and generated a net profit of $5.9 million, of which Moynes kept $1.5 million, according to the commission's complaint.
On March 8, 2023, Moynes reached a settlement with the SEC, without admitting or denying the allegations in the complaint.
Moynes and his three companies were ordered to pay a total of more than US$3.4 million in disgorgement of ill-gotten gains, prejudgment interest and civil penalties.
Moynes is also barred from the securities industry in the U.S. but remains free to conduct business in B.C. as the BC Securities Commission has not issued any orders against him.
