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Alberta sentences Caroline 'Many Names' for 'pump-and-dump' to jail

Staff writer |
The Provincial Court of Alberta has sentenced Caroline Meyers, the principal of Calgary-based International Securities Group, to two years in prison for her role in the 2010 market manipulation of the securities of Coastal Pacific Mining Corp.

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Caroline Meyers is also known as Caroline Winsor, Caroline Danforth, and Caroline Winsor-Meyers.

In December 2015, Meyers pled guilty to acting as a dealer of securities without registration, not filing a prospectus, and engaging in a course of conduct that resulted in a false appearance of trading activity and an artificial price for Coastal Pacific securities.

Her co-accused, Joseph Bucci, also pled guilty to the same charges in September 2015. Bucci received an 18-month conditional sentence and permanent market bans, the first court sentence handed down in a ‘pump-and-dump” case in Alberta. Meyers is the second such sentence - the first with time served in jail.

Meyers recently returned to Canada from the U.S., where she spent time in jail for similar misconduct involving securities of different companies.

Provincial Court Judge Skene also ordered that Meyers be permanently prohibited from:

- trading in and purchasing securities or derivatives of publically traded or quoted issuers;

- using any exemptions in Alberta securities laws; and

- acting in a management or consultative capacity in connection with activities in the securities market.

“Penny stock fraud (‘pump-and-dump’ schemes) is a serious and growing problem in North America, undermining the integrity of our capital markets and inflicting tens of millions of dollars in damage to unsuspecting victims,” says Alberta Securities Commission (ASC) Director, Enforcement Cynthia Campbell.

“These activities create artificial demand by distorting the price of shares through falsehoods and exaggerations of company success. Perpetrators cash in on the falsely inflated prices, halt the misinformation and watch as the share price comes crashing to the ground. Innocent purchasers are left holding essentially worthless shares.”


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