News Summary
Andrew Coldicutt, a San Diego attorney, has received an 85-month prison sentence for orchestrating two fraudulent stock schemes that involved misleading securities registration. Although he was found guilty on multiple counts and fined $100,000, no actual investors were harmed due to the involvement of undercover FBI agents. His actions have raised serious ethical concerns within the financial and legal communities, prompting discussions on the importance of trust in securities transactions.
San Diego – Andrew Coldicutt, a 44-year-old attorney from San Diego, has been sentenced to 85 months in prison for orchestrating two fraudulent “pump-and-dump” stock schemes. Found guilty on 17 counts, including securities fraud and wire fraud, his actions posed significant legal breaches in the financial market, despite no investors being harmed in these schemes.
The first fraudulent operation involved Coldicutt creating a fictitious company and filing misleading securities registration statements to manipulate stock prices. Coldicutt’s accomplices in this scheme were actually undercover agents from the FBI, which means that no real investors suffered financial loss from the operation. In the second scheme, he sought investments from those same undercover agents and provided them with a false opinion letter to facilitate the illicit sales of stock. Again, no investors were harmed as the stock transfer was ultimately denied.
As a part of his sentencing, which was passed down by a federal court, Coldicutt was ordered to pay a $100,000 fine. Additionally, he must forfeit over $42,000 in proceeds derived from his fraudulent schemes. The illegal activities took place between 2017 and 2019, and were associated with a bogus backyard fruit-harvesting business and another scheme that promised fast capital generation. Evidence against Coldicutt included audio recordings capturing him fabricating business plans and accepting cash payments for nonexistent stock.
Investigative details indicate that Coldicutt had projected earnings of approximately $240,000 from the first scheme, with estimated profits soaring up to $4.85 million. The elaborate nature of his fraudulent activities has raised concerns within the legal and financial communities regarding ethical practices and trust.
The Acting U.S. Attorney for the region, Andrew R. Haden, highlighted the essential nature of trust in the securities profession, noting that the integrity of the financial system is fundamental to its operation. Law enforcement’s dedicated efforts in investigating and curbing such criminal activities were acknowledged as vital to protecting the financial markets.
FBI Special Agent in Charge Stacey Moy further commented on the ethical standards expected from legal professionals, cautioning against the severe repercussions of exploiting that trust for personal gain. Coldicutt’s actions reflect a significant breach of professional ethics which has not only endangered the integrity of financial markets but also raised questions regarding accountability within the legal profession.
Although Coldicutt faced a maximum penalty of twenty years in prison for each count of his conviction, the current sentence of 85 months reflects the severity of his conduct and the extent of his criminal activity. A formal sentencing hearing for related civil actions from the Securities and Exchange Commission (SEC) is expected to occur on July 11, which may bring additional consequences for his actions.
The fraudulent schemes led by Coldicutt serve as a cautionary tale about the potential for malfeasance within the securities industry and the imperative for legal oversight. Trust is a critical asset in finance, and breaches such as these contribute to a broader atmosphere of skepticism and wariness in investment practices.
As investigations continue, the repercussions of Coldicutt’s activities underscore the need for vigilance in monitoring the conduct of professionals within the financial sector, ensuring that such abuses of trust do not tarnish the reputation of the industry as a whole.
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Additional Resources
- 10 News
- Wikipedia: Securities Fraud
- Hoodline
- Google Search: Pump and Dump
- Mercury News
- Google Scholar: Stock Market Schemes
- NBC San Diego
- Encyclopedia Britannica: Stock Market
- Patch
- Google News: Andrew Coldicutt
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
