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ASAB Connection to Nine Pump & Dump Recidivists
Indicted in BRYN EVRN & WGRL Frauds

July 15, 2015:  The United States Department of Justice, working in conjunction with the SEC, yesterday unsealed an indictment against nine individuals for their involvement in international stock fraud and money laundering crimes.  The schemes involved the manipulation of Bryn Resources, Inc. (BRYN), Warrior Girl Corp (WRGL) and Everock, Inc. (EVRN). Both BRYN and WRGL have appeared on this website's promotion watch several times in the past.

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.

Frank Zangara
According to the indictment, Zangara and Moeller initially controlled almost all the shares of EVRN and conducted much of the promotional activity themselves through their company Spectrum Research Group, which was run by co-defendants Moeller and Dresner. Moeller also acted as President of EVRN. Spectrum had falsely claimed within promotional materials that it was independent of EVRN. In a report we first released in November 2013, we detailed this same modis operandi as it pertained to Zangara's Allerayde SAB, now know as Stragenics, Inc. but still trading under the symbol (ASAB).

Mark Dresner
During the ASAB scam, Spectrum also claimed to be independent of the subject of its report, but we showed that in fact the promoting entity resided at the same address as Zangara's BHI Group. Not surprisingly, BHI Group was also identified as an owner of EVRN stock within the indictment. Dresner, BHI Group's Director of Marketing, was also the former CEO of ASAB when it was known as Resource Exchange of America Corp (RXAC).

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.