8 indicted in 'pump-and-dump' securities fraud scheme

8 indicted in 'pump-and-dump' securities fraud scheme

By Associated Press

SEATTLE (AP) - A federal grand jury in Seattle has indicted eight people in Washington, Utah and Florida in a securities fraud scheme that allegedly brought in $1.2 million.

The indictment says the defendants sold stock in companies they had secretly acquired. They sent out press releases and "junk faxes" to pump up interest in the stock before they sold it. It's called a "pump-and-dump" scheme.

One of the defendants, 63-year-old Beverlee Kamerling, of Bellevue, has a history of stock fraud. In 1999, she was barred by a U.S. District Court judge from ever serving as an officer or director in a public company and she was ordered to pay back $1.5 million from another scheme. This time, Kamerling is accused of hiding her involvement by listing her mother, son and boyfriend as officers.

The indictment includes 21 counts, including mail fraud, international money laundering and obstruction of justice. Kamerling and her 22-year-old son, Nicholas Alexander, were arrested today.

A Bellevue lawyer who assisted them pleaded guilty in federal court last week.

The others charged are 32-year-old Joel Ramsden, of Delray Beach, Florida; 37-year-old John Johansen, of Plantation, Florida; 66-year-old John Worthen, of Salt Lake City; 65-year-old Donald Goldstein, of Highland Beach, Florida, and his son, 35-year-old Jamie Goldstein, of Boca Raton., Florida; and 36-year-old Seth Quinto, of Miami.

Securities fraud and mail fraud carry maximum penalties of up to 20 years in federal prison and fines of up to $250,000.
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