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US nabs traders over Guyana Gold Corp shares

Four men have been nabbed in a sting by US federal agents for trying to bribe stock brokers to buy shares in Guyana Gold Corp., a US over-the-counter company.

According to the Vancouver Sun, John Zanic, a stock promoter, was arrested in Las Vegas on September 16. The US Securities and Exchange Commission (SEC) filed a similar civil complaint against Zanic in US District Court in New York. Promoters Glenn Grossman and Lawrence Steven Cohen of New York, and David Schmidt are also named in the action. They were caught by an undercover agent who pretended to represent a group of brokers with trading discretion over the accounts of wealthy clients.

According to the Sun article, the Guyana Gold Corp. is based in Las Vegas and is ostensibly exploring for gold in Guyana. Its shares are listed on the “pink sheets,” an unregulated computerized trading forum in the United States. Since May, when the undercover agent bought shares at 63 cents each, the stock has slumped to two cents. Until recently, The Sun said, the company was controlled by controversial Vancouver promoter Louis Dion and operated under various names, including World Bingo League Co., World Entertainment Corp., and World Mobile Network Corp. In January this year, the company shifted into the exploration business and changed its name to Guyana Gold. The company’s president and principal shareholder is now listed as Eduard Aronov.

According to the SEC complaint, in April the four men offered to pay the agent a 30% kickback for arranging the purchase of US$2M to US$3M worth of shares of Guyana Gold. Zanic allegedly agreed to a “test transaction” in which the undercover agent arranged the purchase of 115,000 shares at a total cost of US$72,350, for an average price of 63 cents per share.

To ensure the purchase orders were matched with the sell orders, Zanic gave detailed instructions to the undercover agent about the size, price and timing of the transactions. He also told him which market makers to use to execute the orders, the complaint alleges. In May, after the transactions were matched and completed, Zanic wired US$7,480 to the undercover agent, allegedly as a kickback. This was just 10% of the gross value, much less than the 30% that had been agreed upon. When the agent complained, Grossman wired another US$6,300, and promised to send the remaining portion separately.

In the criminal action, Zanic was charged with conspiracy to commit securities fraud. After his arrest in Las Vegas, he was sent to New York, where he made an initial court appearance on October 2. His bail was set at US$500,000 and his travel restricted to New York and Las Vegas.

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25 Responses to “US nabs traders over Guyana Gold Corp shares”

amen-ra
on October 11th, 2008 5:56 am

Wow, good work by the f bi, i never knew that guyana have a gold co in the u.s.a, i guess these people trying to steal from guyana and get caught if this was in guyana they would’ve got off scotch free.

[Reply to this]
talkout
In reply to the above comment on October 11th, 2008 8:04 am:
thats so true but i wonder how many guyanese in high places were involved?

[Reply to this]
Ravi
In reply to the above comment on October 11th, 2008 3:04 pm:
amer-ra you and talkout should not just imply every crime that happen involves the government of Guyana or a cover up.

Another thing the word is scot free. I think you are drinking too much of the PNCR scotch.

[Reply to this]
talkout
In reply to the above comment on October 11th, 2008 4:12 pm:
Ravi first of all im ppp so u need to shut and only when you’re in a party you could speak like i did

Ravi
In reply to the above comment on October 11th, 2008 6:29 pm:
Well I am a Democrat. You have to make a comment like you have sense.

Kaieteur Gold
In reply to the above comment on October 12th, 2008 9:19 am:
Nice job wid de “hatchet” Stabroek News but I have to say dat de word shoulda been “Piwari” and not “Scotch” in relation to de “R” behind de PNC.

Re:

“[.......stay tuned to propaganda press cause unlike stabroek and chronicle when it comes to Guyana we don't fire blanks or have a fairy tale department.......]”

http://www.topix.com/forum/world/south-america/T8JONO03PMO52KLK9
ALL_GT
on October 11th, 2008 7:38 am

classical pump and dump scheme.

[Reply to this]
shea30
on October 11th, 2008 7:52 am

what will they think of next….another get rich quick scheme that has propel Guyana to the forefront, not in a good way though; the saddest part about this is that Guyanese are being given a bad name because of a few avaricious persons.

[Reply to this]
Charriot
In reply to the above comment on October 12th, 2008 7:00 pm:
Everybody look at Guyana as free-for-all.

We should change our national slogan from LAND OF MANY WATERS to LAND OF MANY CROOKISH OPPERTUNITIES.

[Reply to this]
talkout
on October 11th, 2008 8:05 am

amen-ra thats so true but i wonder how many guyanese in high places were involved?

[Reply to this]
Kumar Persaud
on October 11th, 2008 8:20 am

If only the politicians in Guyana had the political will to facilitate the ingenuity of Guyanese in a way that would benefit Guyana.

[Reply to this]
sheik
on October 11th, 2008 8:53 am

This is not a guessing game.These men are just as front with slick Guyanese bringing up the rear.Stay tuned.

[Reply to this]
Joe Coxall
on October 11th, 2008 9:10 am

This no doubt gives Guyana another blackeye. but these are small time crooks plying a scam that goes on all of the time.

The late American president FDR, once said that no world event (except for natural disasters) happens by accident, they are planned.

This present world crisis, is no exception, the megarich and ultrarich will make a killing in profits. These world events are really not about what they tell us, it serves to consolidate power and control into the hands of a few.

Check out the following site the real info on what is really going on.

http://www.themoneymasters.com/faqs.htm

Joe.

[Reply to this]
Shea30
In reply to the above comment on October 13th, 2008 9:15 am:
you’re absolute correct….more to come…we have not heard it all…stay tuned folks.

[Reply to this]
Kaieteur Gold
on October 11th, 2008 9:45 am

Wow! We ought to get our company going soon too; the name - “KAIETEUR GOLD”. How many “shares” ya all want - Eh? :-$

[Reply to this]
bing
In reply to the above comment on October 11th, 2008 8:19 pm:
Twenty thousand shares kaieteur gold. Make me COO with an option of 2.5 million shares in two yrs time. Laugh.

[Reply to this]
Kaieteur Gold
In reply to the above comment on October 12th, 2008 1:52 pm:
Re: “[....Twenty thousand shares kaieteur gold..........................................2.5 million shares in two yrs time....]” Regret to tell ya “bing” that KG is now “oversubscribed” so; how about waiting for the IPO in about 3 -5 years when a change is anticipated in the present global economic situation. Meanwhile, we will keep your application for COO in our active file.

Thank you for your interest KG. :-$ :-$
guy123
on October 11th, 2008 9:53 am

Dem and raja gon meet up an gaff lol!!

[Reply to this]
Fulano de Tal
on October 11th, 2008 9:56 am

Everybody seems to be capitalising on our “corruption index”

[Reply to this]
drumup_change
In reply to the above comment on October 11th, 2008 11:39 am:
…..tal just rember everything gone global….no matter what you do the us dollar is the center of attraction still….all the over night business men will soon be captured…..ti..!! was not wrong…..lunchon condem them…..let us continue to look…..sit back and enjoy the ride oncorruption……

[Reply to this]
Kaieteur Gold
on October 11th, 2008 10:00 am

Is dis de one deh talking about?

“Guyana Gold Corp (GYGC.PK)”

“About The Company

Guyana Gold Corp. is committed to becoming a significant mining company in Caribbean by exploring and developing known gold prospects that will create long-life mines. The Company is focused on creating shareholder value and maximizing its opportunities for growth through acquisitions and mergers while being safety conscious and environmentally responsible. …]

http://www.guyanagoldcorp.com/

Huh!

[Reply to this]
Natasha Boston
on October 11th, 2008 11:14 am

Not because the name of the company is Guyana Gold means these people actually went to Guyana or even know people there. It’s just a front some so- called investors use to get unsuspecting persons to invest in their scheme. People can name a company anything they want- as you read they changed names quite a bit- and claim they do anything under the sun. Based on that, I can’t say I believe Guyanese are involved in this one.

[Reply to this]
Fineman cousin
In reply to the above comment on October 11th, 2008 1:23 pm:
you come from hubadee or what check who are the shareholder in this company,then talk to me what you should be asking is what the ggmc is going to do now and what ever agency involved locally with them about the situation

[Reply to this]
Ravi
on October 11th, 2008 6:55 pm

you all have won the Nigerian lottery. Send me $1000.00 dollar and I will send you your check.
Wake up people have you ever heard of a scam!!!

[Reply to this]
Caesar
on October 11th, 2008 7:59 pm

I wonder.What would Guyana do without the USA. In fact,where would it be?In a hole.

[Reply to this]