|Talking about Valentine here. Remember he had ASTN buy shares in jagfn then they got jnot shares then...|
15. U.S. v. Paul D. Lemmon and Mark Valentine, Case No.
On May 14, 2002, a federal grand jury returned an Indictment charging Paul D. Lemmon and Mark Valentine with one count of wire, mail and securities fraud conspiracy, in violation of 18 U.S.C. § 371, and two counts of securities fraud, in violation of 15 U.S.C. § 78j(b) and 17 C.F.R. § 240.10b-5. Lemmon was the founder and Managing Director of Voyager Group, Ltd., a financial services company based in Bermuda. Valentine was the Chairman of Thomson Kernaghan & Co., a securities broker-dealer based in Toronto, Canada. Valentine is also alleged to have owned and controlled a majority of the stock of C-Me-Run, Inc. ("CMER"), SoftQuad Software Ltd. ("SXML"), and JagNotes.com, Inc. ("JNOT"), three companies the stock of which was publicly traded on the over-the-counter market. The Indictment charges that Lemmon and Valentine conspired to sell CMER, SXML and JNOT stock to the Fund for a total of $29.4 million in return for their payment of an undisclosed kickback of $7.8 million to the FBI UCA and others. In addition, the Indictment charges that Lemon and Valentine were to cause securities brokers to receive undisclosed kickbacks in return for their helping to manipulate the market prices of CMER, SXML and JNOT stock by selling the stock to their unsuspecting clients. If convicted, the maximum, statutory term of imprisonment is 5 years for conspiracy to commit wire/mail/securities fraud, wire fraud, and mail fraud, respectively, and 10 years for securities fraud.