Florida Limousine Drive Sentenced to Prison for Securities and Tax Fraud
Eli Goldshor of Boca Raton, Fla.,was sentenced today for conspiracy to commit securities fraud and willfully failing to file tax returns. Goldshor, a self-employed limousine driver, was sentenced by Judge William Zloch in Ft. Lauderdale, Fla., to 18 months in prison.
In January 2008, Goldshor pleaded guilty to conspiracy and failure to file charges. According to the plea agreement and court documents, Goldshor nominally served as president of two subsidiaries of Harvard Learning Centers Inc., a Boca Raton-based corporation whose securities were publicly traded. The company was previously known as American Way Business Development, American Way Home Based Businesses and DCGR International Holdings Inc. Harvard Learning claimed to be involved in several different business ventures.
According to the plea agreement and court documents, from September 2004 through at least March 2007, Goldshor and Donald Platten, who was an officer and sole director of Harvard Learning, engaged in a scheme to cause Harvard Learning to issue stock to Goldshor of which Platten was the true owner. After Goldshor sold the Harvard Learning stock, Goldshor would retain some of the proceeds and use the remainder for Platten’s benefit.
According to the plea agreement and court documents, Platten caused Harvard Learning to issue stock to Goldshor by falsely claiming that the stock was being issued as payment for promissory notes from Harvard Learning to Goldshor. Between May 2005 and February 2006, Goldshor signed promissory note conversion notices to cause Harvard Learning to issue more than 79 million shares of Harvard Learning stock. However, Goldshor knew that the promissory notes were fraudulent in that Harvard Learning only owed him a small portion of the sums referred to in the promissory notes.
According to the plea agreement and court documents, from September 2004 through March 2007, Goldshor transferred some of the Harvard Learning stock that Platten caused to be issued to him to Platten’s future wife, Platten’s sister, as well as other individuals and entities. Goldshor sold the remainder of the Harvard Learning stock in the market for more than $700,000. Goldshor used some of the proceeds to pay his own and Platten’s personal expenses and transferred some of the proceeds to Platten’s family members. In addition, Goldshor failed to file tax returns with the IRS for 2005 and 2006.
In August 2009, Goldshor testified for the government in the trial of Platten for securities and tax violations. Platten was convicted of securities fraud, conspiracy to commit wire fraud, and tax fraud. He is scheduled to be sentenced on Oct. 30, 2009.
John A. DiCicco, Acting Assistant Attorney General of the Justice Department’s Tax Division, commended the agents from IRS Criminal Investigation and the Food and Drug Administration Office of Criminal Investigations who investigated the case, as well as Tax Division trial attorneys Kenneth C. Vert and Steven D. Grimberg who prosecuted the case.