The headquarters of the US Securities and Change Fee (SEC) is seen in Washington, DC, January 28, 2021.
Saul Loeb | AFP | Getty Pictures
A Minnesota man criminally charged with hijacking dormant shell corporations in pump-and-dump fraud schemes dropped a lawsuit he had filed in an effort to grab a penny-stock firm in Florida.
The voluntary dismissal of the lawsuit by the fraud suspect, Mark Miller, on Thursday night time got here lower than two weeks after CNBC reported his involvement with the Florida company.
The dismissal additionally got here a few week after Miller’s lawyer in that lawsuit withdrew as his attorney.
Federal prosecutors and the Securities and Change Fee in separate criminal and civil actions filed in Minnesota federal courtroom in June accuse Miller of taking up inactive shell corporations and selling false enterprise alternatives to be able to inflate their inventory costs, then promoting tens of millions of shares for revenue.
Miller filed a lawsuit in Palm Beach County, Florida, court in February asking a decide to order a shareholder assembly of an organization known as New World Gold Corporation. The decide granted the movement, based on courtroom paperwork.
The Minnesota man filed one other one other movement within the case in June — only a day earlier than his indictment by federal prosecutors.
Miller claimed in a authorized submitting he was unanimously voted in as director of New World Gold on the shareholder assembly however that the variety of shareholders on the assembly didn’t meet quorum for a voting group. Miller requested the decide to retroactively grant quorum for the voting group current on the Could shareholder assembly.
On the listening to for the movement final week, Miller’s lawyer abruptly withdrew from the case, citing “irreconcilable variations that don’t have anything to do with cash.” The lawyer’s movement to withdraw was granted Tuesday.
Miller submitted a submitting late Thursday night time to voluntarily dismiss the case.
New World Gold’s inventory worth motion, social media and press releases mirror related exercise recognized by federal prosecutors and the SEC within the alleged fraud schemes Miller is charged in. It’s not one of many seven corporations named within the prison and civil instances.
The corporate is presupposed to be within the enterprise of mining. Its inventory trades on the over-the-counter Pink market with a “No Info” warning.
The corporate has not made annual filings with the Florida Secretary of State since 2015, the Division of Companies database reveals. The corporate was simply reinstated on June 4, based on the database, shortly after Miller claimed he was voted in as director of the corporate.
The inventory traded at just a little below a penny on Thursday, and its worth is greater than 8,000% greater than its 52-week low in December.
The corporate in a number of press releases this month stated that it acquired a Wyoming mining business with entry to gold and lithium, and that it recognized properties in Nevada and South Dakota for potential mining. Lithium is a fabric utilized in batteries for private electronics, in addition to for electrical automobiles.
Whereas Miller claimed to have been voted in as director of New World Gold, the corporate lists an Ohio lawyer named Robert Honigford as its president and director in press releases, on social media and within the Florida Secretary of State enterprise database.
CNBC obtained an error message when it tried to contact New World Gold on the e-mail deal with listed on the corporate’s press releases.
Miller didn’t reply to a cellphone name and voicemail from CNBC requesting remark.
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