U.S. v. Padilla et al.
Joseph A. Padilla, of Carlsbad, Calif. and Cabo San Lucas, Mexico, was the principal stock trader in a sophisticated securities fraud scheme that generated tens of millions of dollars in illicit profits involving stock in the companies Oncology Pharma, Inc. and Charlestowne Premium Beverages Inc. In August 2023, Padilla pleaded guilty to one count of conspiracy to commit securities fraud, two counts of securities fraud and one count of attempting to cause the production of an identification document without lawful authority.
Between in or about January and July 2021, Oncology Pharma, Inc. was a thinly traded company that traded on the over-the-counter securities market under the ticker symbol ONPH. In January 2021, Padilla engaged in manipulative trading in ONPH designed, at least in part, to artificially drive up the company’s stock price. Thereafter, Padilla facilitated the sale of at least approximately three million ONPH shares—which were under undisclosed common control—to investors during a promotional campaign.
Between January 2020 and April 2021, Padilla participated in a similar scheme involving the shares of Charlestowne Premium Beverages Inc., a thinly traded company that traded on the over-the-counter market under the ticker symbol FPWM. Padilla similarly orchestrated an effort designed, at least in part, to artificially increase Charlestowne’s stock price and then facilitated the sale of millions of Charlestowne’s shares during a promotional campaign.
If you traded in ONPH and/or FPWM during the time periods indicated above and believe that you may be potential victims of this fraud you should contact the U.S. Attorney’s Office at USAMA.VictimAssistance@usdoj.gov. In your email, please indicate the security traded and the transaction details for the trade(s): date(s), number of shares, price, whether it was bought or sold, and an assessment of gains or losses. Please also indicate whether there is supporting documentation and a representative from the government will assist you in transferring it in a secure manner, as well as contact you with additional verification questions.
Docket Number: 1:23-cr-10075
- Defendant Joseph A. Padilla is scheduled for sentencing on Nov. 1, 2023, at 3:00 pm in Courtroom 21 in the U.S. District Court for the District of Massachusetts in Boston.
- Defendant Kevin C. Dills has pleaded not guilty and is scheduled for trial on Feb. 12, 2024 in Courtroom 21 in the U.S. District Court for the District of Massachusetts in Boston.