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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of California

FOR IMMEDIATE RELEASE
Thursday, May 12, 2022

Two Defendants Sentenced to Prison for Pump-and-Dump Stock Fraud Scheme

Assistant U. S. Attorney Aaron P. Arnzen (619) 546-8384

NEWS RELEASE SUMMARY – May 12, 2022

SAN DIEGO – Gannon Giguiere and Oliver Lindsay were sentenced to prison today for participating in a pump-and-dump securities fraud scheme.  Lindsay, who lived in the Cayman Islands at the time of his arrest, received a 17-month prison sentence, and Giguiere, from Laguna Beach, California, was sentenced to 12 months in prison. 

When Giguiere pleaded guilty in 2019, he admitted to manipulating the market for the stock of Kelvin Medical, Inc., a small medical device company.  Giguiere conspired to pump up the price and volume of these stocks through manipulative trading and/or a stock promotion website designed to get unwitting investors interested in buying the stock. After the stock prices rose and he dumped the shares, Giguiere pocketed more than $1.4 million in fraudulent proceeds from these schemes. Lindsay also pleaded guilty in 2019, admitting that he engaged in manipulative trading with the same goal – to artificially increase the price and trading volume of Kelvin Medical stock. 

In handing down the sentence, U.S. District Judge William Q. Hayes also ordered defendants to make restitution payments to victims of their scheme in the amount of $187,893.43.

“These are fitting sentences for defendants who caused significant harm to investors,” said U.S. Attorney Randy Grossman. “I trust that this will deter others who would participate in schemes that harm the integrity of the United States financial markets.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.

“The FBI is committed to investigating those who prey on unsuspecting investors for their own financial gain,” said FBI Special Agent in Charge Stacey Moy. “These defendants will now face the consequences for their coordinated investment fraud scheme.”

DEFENDANTS                                             Case Number 18cr3071-WQH                         

Gannon Giguiere                                            Age: 49                                   Laguna Beach, CA

Oliver Lindsay                                                Age: 44                                   Vancouver, Canada

SUMMARY OF CHARGES

Conspiracy to Commit Securities Fraud – Title 18, U.S.C., Section 371

AGENCY

Federal Bureau of Investigation

Topic(s): 
Financial Fraud
Securities, Commodities, & Investment Fraud
Press Release Number: 
CAS22-0512-Lindsay
Updated May 12, 2022