Three Charged in Alleged Grifco International Stock Fraud March 13, 2010Posted by jefhenninger in News.
Tags: securities fraud
Three men have been indicted for allegedly defrauding investors who purchased stock from 2004 until 2007 in a publicly-traded company called Grifco International Inc. Evan “Nick” Jarvis and Jim Dial both of Houston, and Alex Ellerman of Chicago, were charged with conspiracy and wire fraud in a eight-count indictment returned by a grand jury on Wednesday, March 3, 2010.
The FBI’s two-year investigative effort with assistance from the U.S. Securities and Exchange Commission and the Harris County District Attorney’s Office led to the indictment which alleges that between 2004 and 2007 Jarvis, Dial, and Ellerman issued shares of Grifco stock (GFCI) to themselves, disseminated false and misleading information about the company in an effort to increase the price of the stock and then sold the overpriced stock to unsuspecting investors in the public market place. As a result of the fraud, the indictment alleges Jarvis received $2,096,239; Dial received $1,659,198 and Ellerman received $1,061,205.
All three defendants are charged with conspiracy and six counts of wire fraud. Ellerman is also accused of obstructing a United States Securities and Exchange Commission investigation of Grifco by deleting information from a computer that was subject to a subpoena on Aug. 12, 2008.