6/11/2023 0 Comments Perian salviola(“MGP”) (collectively, the “Magna Entities”). The Commission’s complaint alleges that Joshua Sason violated Sections 5 and 17(a)(2) of the Securities Act of 1933 (the “Securities Act”) and Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5(b) thereunder, and that he is liable as a control person for the violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder by Magna Group, Magna Equities II, and a third entity alleged to have been involved in the NewLead scheme, MG Partners, Ltd. Kautilya “Tony” Sharma and Perian Salviola, who controlled Pallas Holdings, are alleged to also have participated in the scheme. To obtain approval of the settlement, Joshua Sason and Magna Equities II falsely swore to the court that the fake promissory note was a bona fide debt of NewLead. Magna Equities II and the note’s issuer, NewLead Holdings, Ltd., later agreed to retire the fake debt in exchange for shares of the issuer through a court-approved settlement agreement. The complaint also alleges that in November 2013, Magna Equities II, which was also wholly-owned by Joshua Sason, and Marc Manuel, purchased another fake promissory note from Pallas Holdings. The complaint alleges that Marc Manuel, Magna Group’s former head of research and due diligence, personally negotiated and executed the sham transactions. The defendants’ sales of the Lustros shares also had the effect of destroying the value of the Lustros shares held by the public. The defendants then sold the shares to unsuspecting retail investors, who did not know that the shares were fraudulently acquired and were being sold illegally. and then to convert those notes into shares of Lustros common stock. In sum, the alleged illegal transactions resulted in proceeds of more than $25 million.Īccording to the SEC’s complaint, from approximately December 2012 to June 2013, microcap stock financier Magna Group, which was founded and owned by Joshua Sason, engaged in a scheme to acquire fake convertible promissory notes supposedly issued by penny stock issuer Lustros Inc. On Februthe SEC announced charges against four individuals and related businesses for their roles in two microcap frauds and unlawful securities offerings.
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