A Vancouver fraudster is facing up to 25 years in the clink after pleading guilty to a penny stock swindle, U.S. federal prosecutors said. Marco G. Babini, 62, copped to conspiracy to commit securities fraud and wire fraud linked to a bogus Boston biomedical firm, Endeavor Power Corp.
Babini, snagged by the U.S. Justice Department after a drawn-out extradition from Canada, was part of a classic "pump-and-dump" scheme between July 2012 and March 2013, where he pumped up the stock before selling off the inflated shares, according to a statement from the U.S. Attorney's Office. The scam artist exploited nominee entities in Switzerland, commanding a stash of shares that he agreed, to peddle through rigged trades with an undercover agent posing as a crooked broker.
This sneaky trader tried to pull off a $20,000 test trade in December 2012, aiming to bankroll a campaign to hype the stocks further. The fed's sting operation exposed Babini's dirty deals which involved maneuvers to raise at least $200,000 through deceitful transactions.
Two of Babini's former partners in crime, Edward Withrow III and Samuel Brown, have already faced the music for their parts in the fraud. In past years, Withrow and Brown each pleaded guilty to related charges and got their just desserts, sentenced in 2018 and 2019, the U.S. Attorney's Office reported.
Babini's conviction could lead to a quarter-century behind bars, plus a hefty fine that could double the taken amount. The sentencing, slated for March 14, 2024, will consider the federal guidelines. The case, a win for the good guys, was announced by Acting U.S. Attorney Joshua Levy and the FBI's Boston Chief Jodi Cohen, who both tipped their hats to the international teamwork that brought Babini to accountability.
