Suffield Man Sentenced to Prison In Securities Fraud Scheme

SUFFIELD, CT — A Suffield resident was sentenced to prison in a federal court Thursday for his role in a securities fraud scheme, according to John H. Durham, United States Attorney for the District of Connecticut.

Christian Meissenn, 46, also known as “Christian Nigohossian,” was sentenced by U.S. District Judge Jeffrey A. Meyer in New Haven to three months of imprisonment, followed by three years of supervised release, for his role in a securities fraud scheme.

The sentence was based, in part, on Meissenn’s serious health condition. Judge Meyer ordered Meissenn to serve his three-year term of supervised release in home confinement, Durham said.

According to court documents and statements made in court, starting around 2009 through July 2016, Meissenn and others conspired to defraud investors through a stock “pump and dump” scheme. Meissenn and his co-conspirators induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated, Durham said.

The issuing companies, most of which were essentially shell companies controlled by Meissenn’s associates, included Terra Energy Resources Ltd. (stock symbol “TRRE”); Mammoth Energy Group, Inc. (stock symbol “MMTE”), a company that later became Strategic Asset Leasing Inc. (stock symbol “LEAS”); Trilliant Exploration Corporation (stock symbol “TTXP”); Electric Motors Corporation (stock symbol “EMCO”); Hermes Jets, Inc. (stock symbol “HRMJ”), which later became Continental Beverage Brands Corporation (stock symbol “CBBB”); and Fox Petroleum, Inc. (stock symbol “FXPT”), Durham said.

The conspirators sold positions in those securities that were held by conspirators and their designees at the falsely inflated prices, thereby enriching the members of the conspiracy. As part of the scheme, attorneys signed false and misleading opinion letters that were designed to provide assurances to securities transfer agents and prospective investors. The opinion letters falsely certified that the attorneys had adequately reviewed corporate records and filings for the issuing companies and were satisfied with the adequacy of the companies’ public disclosures, Durham said.

After selling their own shares at a profit, the conspirators allowed the price of the securities to fall, leaving investors with worthless and unsalable stock. As a result, more than 12,000 victim investors collectively lost nearly $19 million, according to Durham.

Between 2011 and 2015, Meissenn earned approximately $4.4 million through this scheme. He failed to report this income to the Internal Revenue Service, resulting in a tax loss to the government of $1,527,834, Durham said.

The investigation revealed Meissenn also failed to file tax returns in 2009 and 2010. In connection with a Connecticut Department of Banking investigation in 2013, Meissenn signed and filed a notarized affidavit falsely stating that he had a negative net worth and had not filed taxes due to lack of income, Durham said.

On Nov. 8, 2016, Meissenn pleaded guilty to one count of conspiracy to commit mail and wire fraud, and one count of tax evasion.

Judge Meyer ordered Meissenn to pay restitution of $5,301,694 to victims, and $1,527,834 to the IRS. The government has received victim impact statements from more than 800 victims of this scheme, Durham said.

Meissenn, who is released on bond, was ordered to report to prison on Jan. 10, 2019.

Image via Shutterstock

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