Putnam resident Guy Gentile wants to get the SEC’s $17 million civil fraud case against him dismissed, just like he got its criminal case dismissed in January. And he’s accusing the SEC of fraud.
Gentile, 40, a Putnam Valley resident with a broker-dealer business in the Bahamas, was called a “rogue FBI informant” by the New York Post.
In 2016 the SEC alleged that he engaged in manipulative trading, provided illegal kick-backs, and distributed promotional materials — with fake publication names like “Stock Trend Report” and “Global Investor Watch” — all in order to tout the stocks of purported gold and silver exploration company Raven Gold Corporation (RVNG) and natural gas production company Kentucky USA Energy (KYUS).
In reality, Gentile said, he had under duress worked with the Department of Justice for three years and had helped them with many convictions before telling them in 2016 he was going to stop being a cooperating witness.
That’s when the feds indicted him.
Gentile was accused of perpetrating penny stock manipulation schemes. Pumping up the prices of stocks in the two companies and then selling them to investors generated $17.2 million in gross trading proceeds for Gentile and his associates, according to Bloomberg.com in March 2016.
However, a federal judge in New Jersey ruled in January that federal prosecutors took too long to charge Gentile for conduct that the SEC stated ended in 2008.
Now he wants to get the civil suit dismissed. His cooperation with the feds was repeatedly acknowledged by the government in court filings, he points out in his motion to dismiss. So the SEC’s assertions not only split hairs but also constitute fraud on the government’s part, as it means the government deliberately misled him.
Also, according to the motion, all the counts in the SEC’s complaint against Gentile are time barred just like the criminal complaint was. Gentile pointed out the Supreme Court has ruled that SEC actions for civil monetary penalties and disgorgement for conduct more than five years old are precluded.
In an email to Patch, Gentile elaborated on the background.
They lied to me in order to get me to help them and continue to twist the truth to a Federal Judge in NJ regarding this case. I hope this gets the attention of the people that can do something about this and investigate misconduct of the SEC attorneys involved in my case.
This is a ten year old case that the SEC has four attorneys making $200K / year working on it- that alone should raise legal eyebrows because if in ten years they were not able to bring a case, why now?
I worked as a cooperator for the Federal Government. I literally spied with the FBI and engaged in operations that brought the government no wiggle room high profile cases. I also taught them about illegalities in the market that they were completely oblivious to and it was difficult for some of the government attorneys to grasp.
In three years, every single assignment I was given, I delivered to them the target they wanted on a silver platter. They never lost.
My work with the government was a 24/7 operation; I was always on call, even on holidays. I was required to drop whatever I was doing in my own life and travel and work at a moment’s notice. I did this religiously for three years. The amount of stress it put on myself and my family caused severe personal conflicts among us. The stress included the high risk operations I was required to perform, my life was threatened, my cover was blown because of them, putting my life at risk to this day. The Government, specifically now the SEC, continues to treat me as a criminal, even though no criminal conduct was ever proven, because the work the SEC is “investigating” against me, is the work I did for them and the government.
I won a high profile case against the DOJ. The SEC was involved and reaped benefits from my work. They knew everything that was going on with myself. They sat in numerous strategy meetings with the DOJ and the FBI regarding coveted targets that they were unable to catch, until I came along. It was not only my operational work, I was counted on to come up with strategies to ensure a conviction. At one point, they directed me to perform certain actions which I believe entrapped certain targets.
The SEC’s actions are to punish and harm me because I refused to cooperate indefinitely and what they are doing to me now is punitive in nature, nothing more.
I will fight the SEC by all legal means available to me and by all legal means necesary to clear my name from the blight the SEC has brought upon it.
The SEC should have done the right thing; I did all the work they demanded and they have ignored all of it as if I worked for the government without immunity by the FBI. I was not allowed to transfer my business interests so that the government could benefit from the “honey pot”. The SEC had no problems with my Bahamian interests while I was cooperating. They knew the Bahamas operation was legal. Without my business interests and skills as a government honey pot, with the knowledge that my business interests were legal, the SEC is continuing a ten year search of not investigating a wrong, but trying to find or create a legal wrong.
Instead of investigating a true wrong, the SEC is looking for a wrong where one does not exist. It’s a witch hunt.