According to the indictment, the defendants, operating as Moneyline Brokers, generated $6.5-million in illicit profits through Pump & Dump campaigns. Moneyline is said to have provided brokerage services that allowed customers to sell unregistered shares to the unsuspecting public. Moneyline enabled the creation of nominee accounts in the names of shell companies in order to conceal the source and ownership of the securities and the money flow.
Harold Bailey Gallison II, 57, of Valley Center, California; Anna Hiskey, 42, of Costa Rica; Michael Randles, 47, of Costa Rica; Roger Coleman, 79, of Las Vegas; Carl Kruse Sr., 75, of Miami; Carl Kruse Jr., 50, of Miami; Frank Zangara, 52, of Locust Valley, New York; Mark Dresner, 59, of Dix Hills, New York; and Charles Moeller, 46, of Sea Cliff, New York; were named as defendants in the case.
The indictment claims that Gallison was directing the illicit trades behind the scenes. His ability to execute his criminal behavior is a wonder considering that he had previously served jail time for securities fraud in 2005. Apparently his post-incarceration activities were a little more closely watched than he had presumed, although Gallison had acknowledged in a wiretapped conversation with Randles that he could be "hauled off" a plane and arrested. Gallison assured Randles that for a first offence the SEC "raps your knuckles ... it's civil." and that it would be "tough for anyone to figure out what ... we are doing in the first place." As it turns out, the government has brought criminal charges.
One can only assume that further charges against Zangara and company for the ASAB manipulation are forthcoming.
Other tickers connected to Zangara and Dresner include NANI PERT ALVN and VNDB.