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by Mike Caswell
Colorado transfer agent John Ahearn has pleaded guilty to a criminal charge in Florida for his part in a shell scheme that included Canadian Myron Gushlak. He entered the plea in a brief appearance on Thursday, Jan. 25, before Judge Kathleen Williams. He is free on a $100,000 bond. (All figures are in U.S. dollars.)
Prosecutors claimed that Mr. Ahearn was a smaller player in a scheme that led to the $34-million pump-and-dump of Biozoom Inc., a purported biotechnology company. They said that he helped others issue free-trading shares using false and fraudulent information. In a subsequent manipulation the stock went to $4.50 before the U.S. Securities and Exchange Commission halted it.
Others in the scheme include Mr. Gushlak and an unidentified Vancouver lawyer. According to prosecutors, Mr. Gushlak created Biozoom as a shell with a straw CEO, concealing his control over large blocks of shares. He sold the shell ahead of the pump-and-dump, the government says. The Vancouver lawyer, who represented parties on the other side of that transaction, is only referred to in court documents as "Attorney A." Prosecutors describe him as an individual who acted as a promoter for the purchase and sale of public companies.
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