BOSTON – An Idaho man was sentenced yesterday in federal
court in Boston for participating in a market manipulation scheme involving the
stock of Endeavor Power Corp., and then making false statements to the U.S.
Securities and Exchange Commission (SEC) in connection with its investigation
of the fraud scheme.
Samuel Brown, 38, of Bonners Ferry, Idaho, was sentenced by
U.S. District Court Judge Indira Talwani to three years of probation – with the
first five months to be served in home detention – and ordered to pay
restitution in the amount of $22,237. In July 2015, Brown pleaded guilty to one
count of conspiracy to commit securities fraud and wire fraud, and one count of
making false statements to the SEC.
Between approximately July 2012 and March 2013, Brown
conspired to manipulate the securities of Endeavor. In September 2013, Brown
provided sworn testimony to the SEC relating to questions about trading in the
stock. In pleading guilty, Brown admitted that he misled the SEC during the
course of its examination.
In October 2015, Edward Withrow III and Marco Babini were
charged in an indictment for conspiring with Brown. Withrow’s trial ended in a
hung jury in December 2017, and he subsequently pleaded guilty to also making
false statements to the SEC. Babini remains at large and is charged with one
count of conspiracy, one count of securities fraud and two counts of wire
fraud.
United States Attorney Andrew E. Lelling and Joseph R.
Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation,
Boston Field Division, made the announcement. SEC Attorney Eric A. Forni, who
was appointed as a Special Assistant U.S. Attorney, prosecuted the case.
The remaining defendant is presumed to be innocent unless
and until proven guilty beyond a reasonable doubt in a court of law.
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