Man Who Received Over $3 Million Selling Unregistered Diamond Mine Stock Sentenced To Four Years In Prison
LAS VEGAS, Nev. – A former Las Vegas resident who made over $3 million from selling unregistered penny stock in a purported diamond mine company known as CMKM, has been sentenced to four years in prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Marco Glisson, 59, formerly of Las Vegas, but most recently of Miami, Fla., was sentenced on July 10, 2014, by U.S. District Judge Larry R. Hicks. Glisson pleaded guilty on Jan. 15, 2014, to conspiracy to offer and sell unregistered securities and tax evasion. Judge Hicks denied Glisson’s request for a self-surrender to prison, and ordered him into federal custody at the end of the sentencing hearing.
According to Glisson’s plea agreement, Glisson, who was not a registered broker or dealer of securities, conspired with others to purchase and sell CMKM, Inc. penny stock after the U.S. Securities and Exchange Commission (SEC) permanently revoked CMKM’s trading privileges. Beginning in about December 2005, Glisson, and his conspirators used a transfer agent/company known as Global Stock Transfer LLC to cancel CMKM’s stock certificates that were held in the names of other co-conspirators and reissue them to Glisson. Glisson marketed the stock in internet chat rooms under the name “Deli dog” or Deli,” and also used the mail and other resources to offer and sell it. As Glisson sold the shares of CMKM stock, the stock transfer company would cancel them and reissue them to the purchasers. From December 2005 to May 2006, Glisson sold billions of shares of CMKM stock to at least 65 different persons in the United States and Canada. In June 2006, the SEC contacted Glisson and told him that it was illegal to publicly offer and sell unregistered securities. Glisson stopped selling the CMKM stock for a few months, but in September 2006, he resumed offering and selling the CMKM stock and continued selling it until April 2007. Glisson’s sales of billions of unregistered shares of CMKM stock from 2006 to 2007 yielded him more than $1.7 million.
Glisson failed to pay the federal income taxes he owed for 2006 and 2007, and instead took affirmative acts to hide the income, such as placing money in bank accounts under the name of his wife and others and using cash. As a result, Glisson owes over $400,000 in back taxes to the IRS for 2006 and 2007.
Ten co-conspirators were also charged in a separate case pending in the District Court for the District of Nevada. Five are pending trial, one pleaded guilty and is awaiting sentencing, one is a fugitive, one is awaiting extradition, one is deceased, and the charges against another were dismissed.
The case is being investigated by the FBI and IRS Criminal Investigation, and prosecuted by Assistant U.S. Attorneys Kathryn Newman and Andrew Duncan.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.