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Press Release

Vancouver Man Extradited to the United States for Role in Penny Stock Fraud

For Immediate Release
U.S. Attorney's Office, District of Massachusetts
Defendant allegedly participated in market manipulation scheme involving a Boston-based biomedical company

BOSTON – A Vancouver man has been extradited from Canada to the United States for his alleged role in a market manipulation scheme intended to defraud investors in the Boston-based company Endeavor Power Corp.

Marco G. Babini, 62, was arrested in April 2020 and was extradited to the United States on July 7, 2023. Babini made his initial appearance in federal court on July 10, 2023 and was arraigned on July 12, 2023, at which time a federal magistrate judge took his pretrial detention under advisement. Babini was indicted in September 2015 on one count of conspiracy to commit securities fraud and wire fraud; one count of securities fraud; and two counts of wire fraud.

According to the charging documents, between approximately July 2012 and March 2013, Babini allegedly conspired to manipulate the securities of Endeavor. Specifically, it is alleged that Babini and others executed a scheme in which Babini secretly controlled and accumulated a significant portion of the purportedly unrestricted shares of Endeavor without making the legally mandated disclosures to the public. While doing so, Babini and others allegedly engaged in manipulative stock trading transactions and then orchestrated a promotional campaign for the purpose of facilitating the fraudulent dump of their shares into the market, a course of conduct commonly known as a “pump-and-dump.”

Babini’s alleged co-conspirators Edward Withrow III and Samuel Brown were previously charged with and convicted of federal offenses. In May 2018, Withrow pleaded guilty to one count of making false statements to the U.S. Securities & Exchange Commission (SEC). Brown separately pleaded guilty in July 2015 to one count of conspiracy to commit securities fraud and wire fraud and one count of making false statements to the SEC. Withrow and Brown were sentenced in December 2018 and January 2019, respectively.

The charges or conspiracy and securities fraud each provide for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000, or twice the amount involved, whichever is greater. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the amount involved, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua Levy and Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today.  The U.S. Justice Department’s Office of International Affairs and the Department of Justice Canada provided valuable assistance. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Updated July 13, 2023

Securities, Commodities, & Investment Fraud