Swiss America Securities Ltd., the Bahamas-based company founded by Guy Gentile, who is under indictment by the U.S. Securities and Exchange Commission (SEC), has asserted that the financial services company is not implicated in the SEC complaint against Gentile "and is unaffected".
The company issued a statement on Friday in which it was noted that Gentile has been in the industry since 1999, and aside from the complaint mentioned "has never had any disciplinary actions brought by any regulator against him, nor customer complaints in the nearly 20 years as a licensed broker".
"Mr. Gentile is the founder of Swiss America Securities Ltd., a company licensed and regulated by the Securities Commission of The Bahamas (SCB) since 2011 and is in compliance with all industry and government regulatory requirements," the statement read.
Swiss America added that both the firm and Gentile have assisted the SEC and the U.S. Justice Department on "numerous cases, both civil and criminal".
"...And in fact, the U.S. justice department is continuously seeking the assistance in an unrelated case from both Swiss America Securities Ltd. and Mr. Gentile to the present date," the statement read.
Last month, the SEC charged Gentile, a resident of Putnam Valley, New York, with perpetrating penny stock manipulation schemes. The SEC alleges that Gentile, who at the relevant time owned and operated a registered broker-dealer based in Carmel, New York, engaged in manipulative trading, provided illegal kick-backs and distributed promotional mailings of glossy "newsletters" with fake publication names like "Stock Trend Report" and "Global Investor Watch", 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).
According to the SEC, the newsletters misled investors with purportedly positive - but fake - price and volume trends for these stocks and other false information about the promoter's identity, compensation and control of the stock.
"In reality, most of the touted market activity was generated by Gentile and his associates who controlled large blocks of the companies' stocks. Last year, the SEC charged attorney Adam Gottbetter for his role in the KYUS scheme, as well as
Canadian stock promoters Mike Taxon and Itamar Cohen for their roles in the RVNG and KYUS schemes," the SEC charged, adding that the complaint filed in federal court in New Jersey alleges that Gentile violated the Securities Act of 1933, and violated and aided and abetted violations the Securities Exchange Act of 1934 and Exchange Act Rule 10b-5.
"The SEC seeks disgorgement of ill-gotten gains, civil money penalties, injunctions against future violations and a bar against participation in penny stock offerings," the SEC said.
Gentile's attorney, Adam Ford, said the indictment "contains numerous factual inaccuracies and relates to a period over eight and nine years ago, well beyond the statute of limitations, and was brought in violation of his Sixth Amendment rights".
"My client intends on fighting these charges and we are preparing to file a motion to dismiss the indictment. Mr Gentile looks forward to clearing his name," Ford said.
Swiss America Securities Ltd. is based in The Bahamas and licensed and regulated by the SCB since its commencement of business in 2011. In the statement, the company boasted that it maintains the required minimum net capital to operate; holds financial institution professional liability insurance; is an IRS qualified intermediary; is FATCA compliant; and is current and compliant with all anti-money laundering policies which are monitored and managed by the company's chief compliance officer. The decision makers at Swiss America Securities, Ltd. are licensed and assisted by over 30 professionally trained support staff.
K Quincy Parker, Guardian Business Editor
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