Security News: Man Sentenced to 21 Months in Prison for Stock Fraud Schemes

Source: United States Department of Justice News

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

NEWS RELEASE SUMMARY – August 1, 2022

SAN DIEGO – Ongkaruck Sripetch was sentenced in federal court to 21 months in prison for participating in illegal securities fraud schemes. 

Sripetch, a resident of Los Angeles who used the aliases “King Richards” and “Shelby Saint-Claire,” pleaded guilty in February. He admitted that he failed to comply with securities regulations requiring that stock offerings be registered with the Securities and Exchange Commission. He also admitted that his relevant conduct included conspiring with his co-defendants to pump-and-dump the stock of two companies: Ottawa, Canada-based VMS Rehab Systems, which claimed to sell “quality of life orthopedic seat cushions for the home healthcare sector,” and Argus Worldwide, a company headquartered in Cheyenne, Wyoming, which purportedly focused on “digital/internet products and services, smart consumer electronic products and health industries.” In reality, the companies did not live up to the defendants’ claims.

Through these pump-and-dump schemes, Sripetch and his co-conspirators artificially inflated the price of these stocks and then sold the stocks to unwitting investors through the public securities markets. 

In handing down the sentence, U.S. District Judge Marilyn L. Huff noted that “real people lost real money” while the “defendant was living a lavish lifestyle” with his fraud proceeds. 

“Pump-and-dump schemes victimize investors who are sold a bill of goods,” said U.S. Attorney Randy Grossman. “But these schemes also erode the integrity of the United States’ securities markets.  This sentence reflects the seriousness of these crimes.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.

“Sripetch learned the hard way that crime does not pay, and today’s sentencing should send a clear message to anyone thinking they can get away with defrauding innocent investors for their personal gain,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “The defendant conspired with others to commit securities fraud schemes with total disregard for the consequences. Financial crimes have long been at the forefront of the FBI’s efforts, and we will continue to meticulously investigate any and all fraudsters in pursuit of our mission of protecting the American people.” 

The United States appreciates the assistance provided on this matter by the Securities and Exchange Commission.

DEFENDANT                                               Case Number 20cr0160-H                                

Ongkaruk Sripetch                                          Age: 47                                   Los Angeles, CA

SUMMARY OF CHARGES

Violation of SEC Offering Registration Requirements – Title 15, U.S.C., Section 77e(a)(1)

AGENCY

Federal Bureau of Investigation

Defense News: SECNAV Del Toro Statement on Closure of the Red Hill Bulk Fuel Storage Facility

Source: United States Navy

The Department of the Navy fully supports Secretary Austin’s decision to defuel and permanently close the Red Hill Bulk Fuel Storage Facility.

I look forward to working on this in close coordination with our interagency partners to include the U.S. Indo-Pacific Command, Defense Logistics Agency (DLA), U.S. Environmental Protection Agency (EPA), and the State of Hawaii Department of Health (HDOH).

As we are committed to protecting all of the residents of Hawaii, the environment, and the security of our nation, this plan will be developed and implemented in a responsible and safe manner that complies with environment laws and best practices.

This work will be done concurrently as we continue to work on the remediation and restoration of safe drinking water and getting our families back in their homes.

Defense News: Chief of Naval Operations Adm. Mike Gilday Statement on the Passing of the 21st CNO Adm. Thomas B. Hayward

Source: United States Navy

Today, the Navy grieves alongside the family and friends of Adm. Thomas B. Hayward as we celebrate his legacy and service to our nation.  He was a Sailor, a warfighter, a man of honor and integrity, who served as the Chief of Naval Operations from 1978 to 1982.  As CNO, he expertly led the Navy during challenging times after the end of the Vietnam War and the transition to an all-volunteer force.  Facing both the 1979 Iranian hostage crisis and renewed Soviet competition in the midst of the Cold War, he rebuilt the combat readiness of the Navy through significant personnel and material investments and restored “Pride in the Navy.”  Focused on operational superiority, he prioritized building sophisticated capabilities to support a global, offensive-minded maritime strategy.  He enlisted in the Navy during World War II and as a naval aviator flew combat missions in Korea and Vietnam.  We truly lost a great leader and shipmate.  We are grateful for your leadership, mentorship and commitment to our Navy and nation.  Fair winds and following seas, Sir. 

Defense News: CNO Gilday and MCPON Smith Issue a Message for Black History Month 2022

Source: United States Navy

CNO:  Shipmates, CNO Gilday here with MCPON Smith aboard the guided-missile cruiser USS Gettysburg, a storied warship and enduring symbol of the decisive battle that turned the tide of the U.S. Civil War, a battle for the soul of America, a battle that ultimately forged a stronger nation.

And we’re here today to celebrate Black History Month and recognize the many achievements of Sailors, past and present, for their service.

MCPON:  We stand on the shoulders of giants, we must never forget their dedication and service.

CNO: Leaders like the “Golden Thirteen” who were the first Black naval officers commissioned in February 1944 and Cook Third Class Dorie Miller who demonstrated relentless courage during the attack on Pearl Harbor.

MCPON:  And Master Chief Boatswain’s Mate Carl Brashear, the first Black Navy diver; Jesse L. Brown, the 1st Black American Aviator and 1st Black American killed in the Korean War; and the first Black woman four-star admiral, Michelle Howard.

CNO:  During Black History Month, take the time to learn about the many incredible leaders and trailblazers who helped get us to where we are now.  Leaders like Adm. Cecil Haney, Vice Adm. Mel Williams, Rear Adm. Annie Andrews, Fleet Master Chief April Beldo, and Command Master Chief Dee Allen, to the four Black women currently serving as commanding officers of U.S. Navy warships, to now 2nd Lt. Sydney Barber, the first Black woman to serve as the Naval Academy’s Brigade Commander.        

MCPON:  Leadership doesn’t just exist in the history books. I am continually inspired by those who serve today.  We must continue to learn from the example of those pioneering leaders as well as our shipmates in the Fleet today.   

CNO:  And as we do this, we must remember that as we find ourselves in the breach of strategic competition, America needs a flexible, forward deployed, engaged fleet that keeps the seas open and free, generates credible deterrence as sea, and provides quick response options for U.S. leadership. Make no mistake, people are our asymmetric advantage in this competition.

MCPON:  Diversity and inclusion are some of the Navy’s greatest strengths. It’s about talent, teamwork and a wider range of perspectives that pushes us forward to go from good to great and to be able to fight and win.      

CNO:  Our Navy prides itself with developing leaders who, in many cases and despite overwhelming odds, challenges and biases, serve with honor and distinction. 

MCPON:  Every month, not just February, is an opportunity for us to celebrate and renew our shared commitment to the guarantee of equity for all. 

CNO:  Thank you for your commitment to our national security.  We’re surely proud of all that you do.   

Defense News: SECNAV Del Toro Statement on COVID Status

Source: United States Navy

This morning I tested positive for COVID-19. I returned from official travel last Friday afternoon and my most recent negative tests were prior to my travel on the 21st and again on the morning of the 28th. I am following my physician’s instructions and will quarantine for the next five days at a minimum in accordance with CDC guidelines. During this time, I will attend key meetings and discussions virtually and when necessary, the Honorable Meredith Berger, performing the duties of Under Secretary of the Navy, will represent me during my physical absence.

I am grateful to be fully vaccinated and to have received the booster shot in October as I know my symptoms could be far worse. We must continue to vaccinate our naval forces and look out for our physical health as we finish the fight against COVID. The well-being of our Sailors, Marines, Civilians and their families is of the utmost priority.