Clinton Greyling, former president of the defunct Florida-based investment firm Trends Investments, Inc., pleaded guilty to his involvement in a scheme that heavily relied on an unregistered broker for selling securities. According to a statement from the U.S. Attorney's Office, Greyling admitted to aiding and abetting the broker who hawked shares without necessary SEC registration, pocketing roughly 40 percent in undisclosed commissions.
The information filed on July 30, outlined the operation which spanned from February 2017 to June 2019, with Greyling at the helm, Trends Investments scammed investors by promoting "promising" companies soon to break into emerging markets like therapeutic cannabinoids and blockchain. Saddled with over $800,000 in commissions on sales exceeding $1.9 million, the broker in question, sanctioned under Greyling's guidance, sold worthless shares that investors were, as it turned out, generally unable to deposit or trade on time.
The consequences of Greyling's actions could land him in prison for up to 20 years. As announced by Acting United States Attorney Joshua S. Levy and Jodi Cohen, the Special Agent in Charge of the FBI's Boston Division, Greyling's sentencing has been set for December 11, by U.S. District Court Judge Richard G. Stearns. The stakes are high with the charge carrying the potential for additional penalties, including a fine of up to $5 million and three years of supervised release.
Assistant U.S. Attorney James R. Drabick, from the Securities, Financial & Cyber Fraud Unit, is leading the prosecution of a serious market manipulation and fraud case. The promised investment returns did not materialize as detailed in the Department of Justice report.
