Two Found Guilty in $15 Million Pump-and-Dump Scheme Involving VGTel

Christopher Cervino and Sheik F. Kahn were each convicted of one count of conspiracy to commit securities fraud, one count of securities fraud, one count of conspiracy to commit wire fraud, and one count of wire fraud. Ms. Kahn also was convicted of investment advisor fraud and aggravated identity theft crimes. They are each facing 20 years in prison.
This case involved 100 investors who lost more than $15 million.
Sheik F. Kahn, was a registered investment advisor in Las Vegas, and Christopher Cervino, was affiliated with Primary Capital in New York before being barred by the Financial Industry Regulatory Authority Inc. (FINRA) for inflating the market for VGTel, Inc., a publicly traded company. They increased the stock price from approximately $.25 per share in April 2012 to $1.90.  They also inflated trading volume, which in turn increased their ability to raise private investments in the stock.
This fraudulent scheme was conceived and led by Edward Durante, who pleaded guilty to conspiracy, securities fraud, money laundering and perjury in August of 2016 for crimes related to VGTel. According to the U.S. Attorney, Durante made cash payments to Cervino totaling $35,000.  Cervino also received substantial commissions for executing trades in VGTel stock. Kahn received more than $400,000 from Durante, including more than $100,000 in payments for liquidating her clients' investments in annuities so the proceeds could be invested in VGTel. Khan's clients lost all the money they invested in those shares.
If you experienced losses in VGTel, Inc. and were one of the countless victims of Sheik F. Kahn or Christopher Cervino, call Soreide Law Group and speak to an attorney at no cost regarding the possible recovery of your investment losses at:  888-760-6552.
Soreide Law Group represents our clients nationwide before FINRA and we operate on a contingency fee basis.