SEC defendant Reissman hopes to remain free

by Mike Caswell

Walter Reissman, the "right-hand man" to Vancouver-linked fraudster Ed Durante in a pink sheets scheme, has asked for a non-custodial sentence, or one that does not include jail. He claims that his role in the fraud only came about after Mr. Durante used spiritual beliefs to manipulate him. He says that Mr. Durante led him to believe that Mr. Durante shared his religion and was "in search of religious awakening and enlightenment."

The request from Mr. Reissman comes as he is awaiting sentencing for a scheme in which he and Mr. Durante defrauded investors of $11-million or more by selling ultimately worthless shares of VGTel. (All figures are in U.S. dollars.) According to the government, Mr. Durante told investors that the stock could go to $50 while he touted unrealistic deals. Many of the scheme's victims were retirees and widows, with some selling conservative investments to buy VGTel.

Mr. Reissman, 60, pleaded guilty to criminal fraud charges stemming from the scheme on Jan. 6, 2016. Sentencing guidelines specify that he should serve a term of eight to 10 years, but it is doubtful that he will serve a sentence anywhere close to that length. This is at least partly because Mr. Reissman co-operated with the government and testified against two of his co-defendants in court. Based on his assistance, prosecutors recommended a lighter than usual term. They did not specify any particular sentence for him, but the probation department submitted a figure of one year plus a day.

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