Back in May of this year Colorado attorney Diane Dalmy was sentenced to three years in prison for her role in a massive pump & dump scheme that stole $20 million dollars from investors. She reportedly only cleared $30,000 on the deal.
Yesterday it was announced that Dalmy was getting an extra two years slapped onto her sentence for hiding undeclared cash in a storage locker.
Except it wasn’t Breaking Bad levels of cash, it was a mere $47,000.
Not Her First Rodeo
In accordance with official records and statements made in court, between January 2009 and July 20-16, Dalmy used her standing as a lawyer to help others execute”pump and dump” schemes.
Throughout the campaign, Dalmy acted as a co conspirator, writing in her name, deceptive opinion letters which were used to unrestrict the co conspirators’ stock in order for the stock might be traded on the open market, and never needing to enroll the stock with the Securities and Exchange Commission.
Finally, Dalmy totaled roughly $825,000 in profits of this plot through a banking accounts for an individual company she helped incorporate, along with also her IOLTA. She now has to pay $2 million in restitution, leaving her -$1,175,000.
For those newer to investing here’s a quick explainer video of exactly what a pump & dump is: