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Strategies & Market Trends : Conversion Solutions Holdings Corp. - A Scam? -- Ignore unavailable to you. Want to Upgrade?

To: anniebonny who wrote (4384)	11/3/2009 7:40:28 PM
From: anniebonny	Respond to of 4624

Rufus Paul Harris of Adairsville, along with Darryl Horton of Okemos, Michigan, and Benjamin Stanley of Kennesaw were indicted in September. Horton was arrested on Oct. 17 and Stanley and Harris surrendered today. Adairsville man, 2 others make first appearance on charges they defrauded investors November 3, 2009 tinyurl.com An Adairsville man was one of three who made their first court apperance today before a United States Magistrate Judge, indicted on charges of securities fraud and conspiracy in connection with a scheme to defraud investors of Conversion Solutions Holdings Corporation. Rufus Paul Harris of Adairsville, along with Darryl Horton of Okemos, Michigan, and Benjamin Stanley of Kennesaw were indicted in September. Horton was arrested on Oct. 17 and Stanley and Harris surrendered today. According to Acting United States Attorney Sally Quillian Yates, the charges and other information presented in court: Harris was the founder and CEO of Conversion Solutions Holdings Corporation, Stanley was the co-founder and COO and Horton was the CFO. The indictment alleges that they issued false press releases and financial statements about the company to inflate the stock price, while at the same time secretly transferring their own shares to family members who sold at the inflated prices. In at least one of the press releases, Harris was quoted as stating that, based on CSHC’s acquisition of large quantities of sovereign debt, “we are looking at a new justifiable reorganization release price of $25.63 [per share].” At the time, CSHC shares generally traded at less than approximately $1 per share. The indictment alleges that the three defendants knew these public statements were untrue, and that they knew that CSHC had little if any assets of any value and did not own or control the foreign sovereign bonds and other assets that it claimed to have. CSHC also had little if any in the way of revenue or profits from any business activity. During the weeks that the alleged misrepresentations were being publicly disseminated via press releases and SEC filings, CSHC’s stock price on the open market more than tripled. The stock, which was a “penny-stock” trading for less than $1 per share in August 2006, appreciated to more than $3 per share in October 2006. During this time, Harris, Stanley and Horton allegedly transferred substantial quantities of CSHC stock to family members and others, who sold the stock in the open market at artificially inflated prices of between $2-$3 per share. The indictment charges Harris, Horton and Stanley with one count of conspiracy to commit securities fraud and one count of securities fraud each. Harris is also charged with one count of providing a false certification of a financial statement. The securities fraud charges carry a maximum sentence of 25 years in prison and a fine of up to $250,000. The false certification of a financial statement charge carries a maximum sentence of 10 years in prison and a fine of up to $1,000,000. tinyurl.com

To: anniebonny who wrote (4384)	11/3/2009 7:54:51 PM
From: scion	Read Replies (2) \| Respond to of 4624

CRIMINAL DOCKET FOR CASE #: 1:09-cr-00406-UNA Case title: USA v. Harris et al U.S. District Court Northern District of Georgia (Atlanta) CRIMINAL DOCKET FOR CASE #: 1:09-cr-00406-UNA-1 Case title: USA v. Harris et al Date Filed: 09/15/2009 Assigned to: Judge Unassigned Defendant (1) Rufus Paul Harris Pending Counts Disposition 18:1349 ATTEMPT AND CONSPIRACY TO COMMIT MAIL FRAUD (1) 18:1348 and 2 SECURITIES FRAUD (2) 18:1350 (c)(1) and 2 FAILURE OF CORPORATE OFFICERS TO CERTIFY FINANCIAL REPORTS (3) Highest Offense Level (Opening) Felony Terminated Counts Disposition None Highest Offense Level (Terminated) None Complaints Disposition None Assigned to: Judge Unassigned Defendant (2) Benjamin Stanley Pending Counts Disposition 18:1349 ATTEMPT AND CONSPIRACY TO COMMIT MAIL FRAUD (1) 18:1348 and 2 SECURITIES FRAUD (2) Highest Offense Level (Opening) Felony Terminated Counts Disposition None Highest Offense Level (Terminated) None Complaints Disposition None Assigned to: Judge Unassigned Defendant (3) Darryl Horton Pending Counts Disposition 18:1349 ATTEMPT AND CONSPIRACY TO COMMIT MAIL FRAUD (1) 18:1348 and 2 SECURITIES FRAUD (2) Highest Offense Level (Opening) Felony Terminated Counts Disposition None Highest Offense Level (Terminated) None Complaints Disposition None Plaintiff USA represented by Justin S. Anand Office of United States Attorney 75 Spring Street, S.W. 600 United States Courthouse Atlanta , GA 30303 404-581-6322 Email: justin.anand@usdoj.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED Jamila Marjani Hall U.S. Attorney's Office - ATL 600 Richard Russell Building 75 Spring Street, S.W. Atlanta , GA 30303 404-581-6000 Fax: 404-581-6181 Email: jamila.hall@usdoj.gov ATTORNEY TO BE NOTICED Date Filed # Docket Text 10/28/2009 15 NOTICE OF ATTORNEY APPEARANCE Jamila Marjani Hall appearing for USA. (Hall, Jamila) (Entered: 10/28/2009) 10/26/2009 14 Rule 5(c)(3) Documents Received from USDC, Western District of Michigan, Southern Division, case number 1:09-mj-00385-JGS-1 as to Darryl Horton. (Attachments: # 1 Waiver of Rule 5 & 5.1 Hearings, # 2 Docket Sheet, # 3 Cover Letter) (ryc) (Entered: 10/28/2009) 10/23/2009 12 Arrest Warrant Returned Executed on 10/20/09 as to Darryl Horton. (ryc) (Entered: 10/23/2009) 10/20/2009 13 Personal Surety Bond on Rule 5(c)(3) and Order Setting Conditions of Release Entered as to Darryl Horton in the amount of $50,000.00 from USDC, Western District of Michigan, Southern Division. (bond filed in this district 10/26/09).(Attachments: # 1 Memo To AUSA re Appearance Bond) (ryc) Modified on 10/28/2009 to include additional docket text (ryc). (Entered: 10/28/2009) 10/20/2009 Arrest of Darryl Horton (ryc) (Entered: 10/23/2009) 10/20/2009 11 ORDER granting 10 Motion to Unseal Document 1 Indictment as to Rufus Paul Harris (1), Benjamin Stanley (2), Darryl Horton (3). Signed by Magistrate Judge E. Clayton Scofield, III on 10/19/2009. (rvb) (Entered: 10/20/2009) 10/20/2009 10 MOTION to Unseal Indictment by USA as to Rufus Paul Harris (1), Benjamin Stanley (2), Darryl Horton (3). (rvb) (Entered: 10/20/2009) 09/15/2009 9 ORDER granting 8 Motion to Seal Indictment as to Rufus Paul Harris (1), Benjamin Stanley (2), Darryl Horton (3). Signed by Magistrate Judge Russell G. Vineyard on 09/15/2009. (rvb) (Entered: 10/20/2009) 09/15/2009 8 MOTION to Seal Indictment by USA as to Rufus Paul Harris (1), Benjamin Stanley (2), Darryl Horton (3). (rvb) (Entered: 10/20/2009) 09/15/2009 7 Praecipe filed. Arrest Warrant Issued as to Darryl Horton (3) and delivered to USM on 9/16/2009. (rvb) (Entered: 10/20/2009) 09/15/2009 6 Praecipe filed. Arrest Warrant Issued as to Benjamin Stanley (2) and delivered to USM on 9/16/2009. (rvb) (Entered: 10/20/2009) 09/15/2009 5 Praecipe filed. Arrest Warrant Issued as to Rufus Paul Harris (1) and delivered to USM on 9/16/2009. (rvb) (Entered: 10/20/2009) 09/15/2009 4 Defendant Information Sheet as to Darryl Horton (3). (rvb) (Entered: 10/20/2009) 09/15/2009 3 Defendant Information Sheet as to Benjamin Stanley (2). (rvb) (Entered: 10/20/2009) 09/15/2009 2 Defendant Information Sheet as to Rufus Paul Harris (1). (rvb) (Entered: 10/20/2009) 09/15/2009 1 INDICTMENT as to Rufus Paul Harris (1) counts 1-3, Benjamin Stanley (2) counts 1-2, Darryl Horton 3 counts 1-2. (rvb) (Entered: 10/20/2009) ecf.gand.uscourts.gov

To: anniebonny who wrote (4384)	11/3/2009 8:38:21 PM
From: scion	Respond to of 4624

The indictment charges HARRIS, HORTON, and STANLEY with one count of conspiracy to commit securities fraud and one count of securities fraud each. HARRIS is also charged with one count of providing a false certification of a financial statement. The securities fraud charges carry a maximum sentence of 25 years in prison and a fine of up to $250,000. The false certification of a financial statement charge carries a maximum sentence of 10 years in prison and a fine of up to $1,000,000. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.