Two more Canadian men have been arrested in the investigation of a $140-million international penny stock scheme that allegedly involved fraudulently inflating share prices.
Sandy Winick, 55, and Gregory Curry, 63, were both arrested Monday in Bangkok, Thailand, and will be extradited to the U.S. to face charges, the FBI said.
"Sandy Winick and Gregory Curry were wanted for their alleged roles in one of the largest international penny stock frauds and advance fee schemes in history," FBI assistant director in charge George Venizelos said in a statement.
Two other Canadians — Kolt Curry, 38, and Gregory Ellis, 46 — were among seven people arrested last week.
The fraud, which Winick allegedly "masterminded," generated funds from investors in about 35 countries through various brokerage and bank accounts, according to a statement from the office of U.S. Attorney Loretta Lynch in Brooklyn.
The alleged "pump-and-dump" scheme involved fraudulently inflating, or "pumping up," share prices and trading volumes of certain penny stocks, and then "dumping" billions of shares of those stocks on investors, according to the statement.
The defendants are also accused of operating a so-called advance fee scheme, using call centres from which they would allegedly induce investors to pay fees for non-existent services to sell their liquid penny stock shares.
The charges against the nine defendants include 24 counts of securities fraud, wire fraud and false personation of Internal Revenue Service employees, according to the statement.