Securities attorney Andrew Coldicutt was sentenced to 85 months in prison for securities fraud, false securities registration statements, and wire fraud. The sentence was handed down by U.S. District Judge Jinsook Ohta in a San Diego federal court. In addition to the prison term, Coldicutt was ordered to pay $42,970 in forfeiture and a $100,000 fine.
Coldicutt’s conviction followed a weeklong trial where he was found guilty on all 17 counts. Evidence presented at trial showed that Coldicutt participated in two pump-and-dump schemes between 2017 and 2019. In the first scheme, he created a fraudulent business plan for a fake backyard fruit harvesting company and filed misleading securities registration statements with the SEC. Undercover FBI agents were involved in gathering evidence against him, ensuring no investors were harmed.
In the second scheme in 2019, Coldicutt attempted another pump-and-dump stock fraud for one of his corporate clients. He wrote a false attorney opinion letter to facilitate the sale of stock, but a broker-dealer denied the transfer, preventing any investor losses.
A “pump and dump” scheme involves artificially inflating a company’s stock price through false information or trading practices before selling off shares at high prices, leaving other investors with losses.
U.S. Attorney Adam Gordon commented on the case: “Attorneys are expected to uphold the law, not exploit it.” He emphasized that the sentence holds Coldicutt accountable for his actions. Special Agent Mark Dargis of the FBI’s San Diego Field Office added: “Today’s sentence demonstrates the FBI’s commitment to hold accountable those who unlawfully pursue personal gain at the expense of the American people.”
The Securities and Exchange Commission has also taken civil action against Coldicutt.
