'Pump & Dump' Stock Scheme Lawyer Gets 3 Years In Federal Prison

DENVER, CO -- Denver attorney Diane Dalmy, 63, was sentenced in Connecticut U.S. District Court to three years in prison and ordered to pay $2 million in restitution for conspiracy in a fraudulent stock "pump and dump" scheme, the U.S. Dept. of Justice said in a press release. Dalmy herself earned about $30,000 in the scheme that defrauded investors of about $20 million.

Dalmy, who was released on a $100,000 bond, was ordered to report to prison on June 14, 2018.

Daly was associated with schemes in fake shell companies Mammoth Energy Group, Inc., (later known as Strategic Asset Leasing Inc.) and Fox Petroleum, Inc. According to the DOJ, Dalmy worked with William Lieberman, of Boca Raton, Florida, and Christian Meissenn, of Suffield, Connecticut, to create fraudulent calls, emails and press releases about the securities and the issuing companies, pumping up the prices. The conspirators then sold their shares, letting stock prices plummet, a press release said.

Dalmy, who operated from a Lakewood business office, pleaded guilty to writing fake opinion letters to unrestrict the co-conpirator's own stocks so that they could be freely traded in the open market without having to register the stock with the Securities and Exchange Commission (SEC), the statement said. She also pleaded guilty to ghost writing similar letters under the name of another Colorado attorney.
Dalmy also pleaded guilty to providing capital for the co-conspirators by using cash from escrow payments from her firms' clients' accounts.

Also, between Feb., 2015 and Jul, 2016, Dalmy laundered about $825,000 through a Lieberman-controlled fake bank account under the name of Queen Asia Pacific Ltd. The Queen Asia account transferred funds to Dalmy's firm's client escrow accounts, which then were transferred to Lieberman, Meissenn, and their network of stock promoters, the DOJ said.

Others in the scheme have also been tried and sentenced by the DOJ. On January 20, 2017, Corey Brinson, a Hartford-based attorney, was sentenced to 36 months of imprisonment and, on September 27, 2017, Damian Delgado, also known as “Michael Neumann,” of Orlando, Florida, was sentenced to 84 months of imprisonment. On May 7, 2018, Brian Ferraioli, of Sayville, N.Y., and Thomas Heaphy, Jr., of East Moriches, N.Y., were each sentenced to 72 months of imprisonment for their roles in this scheme and an unrelated investment fraud scheme. Meissenn and Lieberman await sentencing.

"Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311," a statement from the DOJ said.

Related: Denver Lawyer Pleads Guilty to $20 M Stock 'Pump & Dump' Scheme

Image via Shutterstock