PubCoCEO™

Yesterday, the SEC announced a $58 million judgment against a UK and Canadian resident charged with perpetrating a multimillion-dollar, international pump-and-dump scheme involving the stock of Jammin’ Java Corp. (OTCPINK: JAMN), a company that used trademarks of the late reggae artist Bob Marley to sell coffee products.

According to the SEC, Jammin Java’s former CEO Shane Whittle orchestrated the scheme with three others who live abroad and operate entities offshore. Whittle utilized a reverse merger to secretly gain control of millions of Jammin Java shares, and he spread the stock to the offshore entities controlled by Wayne Weaver of the UK and Canada, Michael Sun of India, and René Berlinger of Switzerland. The shares were later dumped on the unsuspecting public after the stock price soared following fraudulent promotional campaigns.

British twin brothers Alexander Hunter and Thomas Hunter, who were previously charged in a separate SEC case for touting multiple penny stocks using a fake stock picking robot, were charged with fraudulently promoting Jammin’ Java stock to investors.

The final judgment against Wayne Weaver, entered on October 2, 2017, permanently enjoins Weaver from violating Section 5 of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 13(d) of the Exchange Act and Rules 13d-1 and 13d-2 thereunder; permanently bars Weaver from participating in penny stock offerings; and orders Weaver to pay disgorgement of $26,371,585, prejudgment interest of $5,221,809, and a civil penalty of $26,371,585, for a total of $57,964,979. On September 15, 2017, Weaver filed a notice of appeal.

The SEC previously obtained consent judgments against all other defendants named in the action, ordering the payment of more than $8 million in disgorgement, interest, and penalties. The judgments, entered from July 2016 to May 2017, permanently enjoin:

Jammin’ Java, Shane Whittle, Stephen Wheatley, Michael Sun, Kevin Miller, Mohammed Al-Barwani, and Rene Berlinger from violating Section 5 of the Securities Act;

Alexander Hunter (now known as John Alexander) and Thomas Hunter from violating Section 17(a) of the Securities Act;

Whittle, Alexander Hunter, and Thomas Hunter from violating Section 10(b) of the Exchange Act and Rule 10b-5;

Whittle and Sun from violating Section 13(d) of the Exchange Act and Rules 13d-1 and 13d-2; and

Whittle from violating Section 16(a) of the Exchange Act and Rule 16a-3.

The judgments also order:

Jammin’ Java to pay $605,331 in disgorgement, together with $94,669 in prejudgment interest, for a total of $700,000;

Whittle to pay disgorgement of $1,894,669, prejudgment interest of $360,940, and a civil penalty of $250,000, for a total of $2,505,609;

Alexander Hunter and Thomas Hunter each to pay a civil penalty of $300,000;

Wheatley to pay $2,364,125 in disgorgement, together with $385,875 in prejudgment interest, for a total of $2.75 million;

Sun to pay disgorgement of $400,000 and prejudgment interest of $33,796;

Miller to pay disgorgement of $783,369 and prejudgment interest of $116,631;

Al-Barwani to pay disgorgement of $270,000 and prejudgment interest of $41,204; and

Berlinger to pay disgorgement of $47,070 and prejudgment interest of $6,692.

The judgments also bar:

Wheatley and Miller from participating in penny stock offerings permanently;

Whittle from serving as an officer or director or participating in penny stock offerings for ten years; and

Alexander Hunter, Thomas Hunter, Sun, Al-Barwani, and Berlinger from participating in penny stock offerings for five years.

Jammin’ Java, Shane Whittle, Alexander Hunter, Thomas Hunter, Stephen Wheatley, Michael Sun, Kevin Miller, Mohammed Al-Barwani, and Rene Berlinger each consented to entry of the judgments against them without admitting or denying the SEC’s allegations.

 

 

Learn more HERE.

 

---