This case was last updated from PACER on 08/05/2021 at 06:38:56 (UTC).

Securities and Exchange Commission v. Carrillo et al

Case Summary

On August 4, 2021, the Securities and Exchange Commission (the “Commission”), represented by Kathleen Burdette Shields, attorneys at the SEC’s New York regional office, filed a civil enforcement action against Luis Jimenez Carrillo (“Carrillo”), Amar Bahadoorsingh, Justin Roger Wall (“Wall”), and Jamie Samuel Wilson (“Wilson”) (collectively, “Defendants”) and against Haydee Yolanda Sanchez Diaz Monge (“Monge”), The Martha Y. Jimenez Trust, The Charles A. Carrillo Trust (collectively, “Relief Defendants”), seeking permanent injunction and an order requiring the disgorgement by Defendants of all ill-gotten gains with prejudgement interest for alleged securities fraud. This case was filed in the U.S. District Court in the District of Massachusetts with Judge William G. Young presiding.

In its complaint, the Commission alleged that, “Carrillo engaged in multiple deceptive schemes to sell publicly traded stock to investors. From at least 2013 through at least May 2019 (the “Relevant Period”), Carrillo defrauded investors by concealing the fact that he, in concert with others, controlled the securities of numerous publicly traded companies including the securities of Aureus, Inc. (“Aureus”), Garmatex Holdings, Ltd. (“Garmatex”), and OneLife Technologies Corp. (“OneLife”).”

The Commission further alleged that, “Bahadoorsingh partnered with Carrillo at least relating to the Aureus scheme. He coordinated with Carrillo to sell Aureus securities without making required disclosures or complying with the limitations on sales of stock by company affiliates. Wall and Wilson also played critical roles in the Aureus scheme. As a result of defendants’ scheme, what appeared to be ordinary trading by unaffiliated investors was actually a massive dump of shares orchestrated by defendants, who were seeking to profit at the expense of defrauded investors. Investors in certain public companies (including Aureus and OneLife) are required to disclose publicly any ownership interest in excess of 5% of the company’s stock. Defendants engaged in schemes to make it appear that the shares they actually controlled were owned by multiple unaffiliated entities when, in reality, those entities were holding the stock as nominees for the group of defendants acting in concert.”

 

The commission also alleged that, “Carrillo also arranged to transfer the stock he controlled to at least two offshore asset managers to conceal further his control over the shares. The two managers, Wintercap SA (“Wintercap”) and Blacklight SA (“Blacklight”), deposited Carrillo’s stock in accounts at foreign and United States brokerage firms. Through the brokerage firms, Wintercap and Blacklight then sold millions of dollars of shares of Carrillo’s stock to unsuspecting investors.”

 

The Commission has laid down seven claims for relief. The first is for alleged fraud in the offer or sale of securities in alleged violations of Sections 17(a)(1) and (3) of the Securities Act. The second claim is for alleged fraud in the offer or sale of Securities in alleged violation of Sections 17(a)(2) of the Securities Act. The third claim is for alleged fraud in connection with the purchase or sale of securities in alleged violations of Section 10(b) of the Exchange Act and Rules 10b-5(a) and (c). The fourth claim is for alleged fraud in connection with the purchase or sale of securities in alleged violation of Section 10(b) of the Exchange Act and Rule 10b-5(b). The fifth claim is for alleged unregistered offerings of securities in alleged violations of Sections 5(a) and 5(c) of the Securities Act. The seventh claim is for alleged failure to report over 5% beneficial ownership in alleged violations of Sections 13(d) of the Exchange Act, among other equitable relief, including unjust enrichment and constructive trust.

 

In its prayer for relief, the Commission has requested the Court for permanent injunctive relief, disgorgement order with prejudgment interest and an order imposing civil monetary penalties pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. §78u(d)(3)].

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-11272

  • Filing Date:

    08/04/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

  • Courthouse:

    Massachusetts District

Judge Details

Presiding Judge

William G. Young

 

Party Details

Plaintiff

Securities and Exchange Commission

Boston, MA 02110

Defendants

Luis Jimenez Carrillo

Amar Bahadoorsingh

Justin Roger Wall

Jamie Samuel Wilson

Haydee Sanchez Diaz Monge

Martha Y. Jimenez

Charles A. Carrillo

Attorney/Law Firm Details

Plaintiff Attorney

Kathleen Burdette Shields

Attorney at U.S. Securities and Exchange Commission

33 Arch Street, 24Th Floor

Boston, MA 02110

 

Court Documents

#4

(#4) Summons Issued as to Amar Bahadoorsingh, Charles A. Carrillo, Luis Jimenez Carrillo, Martha Y. Jimenez, Haydee Sanchez Diaz Monge, Justin Roger Wall, Jamie Samuel Wilson. Counsel receiving this notice electronically should download this summons, complete one for each defendant and serve it in accordance with Fed.R.Civ.P. 4 and LR 4.1. Summons will be mailed to plaintiff(s) not receiving notice electronically for completion of service. (Jones, Sherry) (Entered: 08/04/2021)

2 #9

Exhibit 6

2 #8

Exhibit 5

2 #7

Exhibit 4

2 #6

Exhibit 3

2 #5

Exhibit 2

2 #4

Exhibit 1

2 #3

Affidavit of Trevor Donelan

2 #2

Text of Proposed Order

2 #1

Memorandum of Law

#2

(#2) MOTION for Preliminary Injunction freezing assets and for other equitable relief by Securities and Exchange Commission. (Attachments: #1 Memorandum of Law, #2 Text of Proposed Order, #3 Affidavit of Trevor Donelan, #4 Exhibit 1, #5 Exhibit 2, #6 Exhibit 3, #7 Exhibit 4, #8 Exhibit 5, #9 Exhibit 6)(Shields, Kathleen) (Entered: 08/04/2021)

1 #2

Category Sheet

1 #1

Civil Cover Sheet

#1

(#1) COMPLAINT against Haydee Sanchez Diaz Monge, Amar Bahadoorsingh, Martha Y. Jimenez Trust, Luis Jimenez Carrillo, Charles A. Carrillo Trust, Justin Roger Wall, Jamie Samuel Wilson (Fee Status: US Government), filed by Securities and Exchange Commission. (Attachments: #1 Civil Cover Sheet, #2 Category Sheet)(Shields, Kathleen) (Entered: 08/04/2021)

4 More Documents Available
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Docket Entries

  • 08/04/2021
  • View Court Documents
  • Docket(#4) Summons Issued as to Amar Bahadoorsingh, Charles A. Carrillo, Luis Jimenez Carrillo, Martha Y. Jimenez, Haydee Sanchez Diaz Monge, Justin Roger Wall, Jamie Samuel Wilson. Counsel receiving this notice electronically should download this summons, complete one for each defendant and serve it in accordance with Fed.R.Civ.P. 4 and LR 4.1. Summons will be mailed to plaintiff(s) not receiving notice electronically for completion of service. (Jones, Sherry) (Entered: 08/04/2021)

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  • 08/04/2021
  • Docket(#3) ELECTRONIC NOTICE of Case Assignment. Judge William G. Young assigned to case. If the trial Judge issues an Order of Reference of any matter in this case to a Magistrate Judge, the matter will be transmitted to Magistrate Judge M. Page Kelley. (Danieli, Chris) (Entered: 08/04/2021)

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  • 08/04/2021
  • View Court Documents
  • Docket(#2) MOTION for Preliminary Injunction freezing assets and for other equitable relief by Securities and Exchange Commission. (Attachments: #1 Memorandum of Law, #2 Text of Proposed Order, #3 Affidavit of Trevor Donelan, #4 Exhibit 1, #5 Exhibit 2, #6 Exhibit 3, #7 Exhibit 4, #8 Exhibit 5, #9 Exhibit 6)(Shields, Kathleen) (Entered: 08/04/2021)

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  • 08/04/2021
  • View Court Documents
  • Docket(#1) COMPLAINT against Haydee Sanchez Diaz Monge, Amar Bahadoorsingh, Martha Y. Jimenez Trust, Luis Jimenez Carrillo, Charles A. Carrillo Trust, Justin Roger Wall, Jamie Samuel Wilson (Fee Status: US Government), filed by Securities and Exchange Commission. (Attachments: #1 Civil Cover Sheet, #2 Category Sheet)(Shields, Kathleen) (Entered: 08/04/2021)

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