Janesville woman reports fraud
(Published Monday, November 20, 2006 11:23:53 AM CST)
Gazette Staff
A Janesville woman told police that a Janesville man she knows forged and cancelled stock certificates worth $11,000 in her name without her permission.
According to Janesville police reports:
The woman said she was dating the man, even though he was married. In May, she went with him to Las Vegas, where she was convinced to invest in diamond mine stocks.
She spent $500 to purchased 5 million shares of stock valued at 0.0001 cent per share and set up a "dynasty trust." Before returning home, the man gifted the woman an additional $10,500 worth of shares.
Shortly after returning home, the woman ended the relationship and registered her stocks with a transfer agent in Las Vegas. When the woman called to check on the stocks in October, the transfer agent told her the man had cancelled the stocks and may have reallocated them.
The woman said the stocks are in her name, officially allocated to her and she never gave consent for them to be transferred. She said she holds documentation for the shares she invested in and that were gifted to her from the man.
The woman believes the man is involved in misappropriation and possibly fraudulent share transfers because he has invested $600,000 worth of shares in the company and has been transferring stock to and from people and taking those stocks back.
She said he is doing it without the investors' knowledge and requesting they sign forms indicating they have received a gift for several hundred thousand or million shares. She said he is not a licensed broker, but has been portraying he is.
It was recommended the police department not follow up on the case, but forward the information to several other agencies that were monitoring the situation, including the Bureau of Registration Enforcement.
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