David Sidoo named as defendant in alleged pump-and-dump scheme

None of the allegations by the U.S. Securities and Exchange Commission have been proven in court

by Charlie Smith on April 17th, 2022 at 2:52 PM

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Vancouver businessman David Sidoo has again found himself at the centre of some unwanted publicity.

After receiving a three-month sentence and a US$250,00 fine in 2020 in the U.S. college-admissions scandal, he's once again caught up in the U.S. legal system.

The U.S. Securities and Exchange Commission has named Sidoo as one of the defendants in an allegedly highly profitable pump-and-dump stock swindle.

None of the allegations have been proven in court.

A 58-page complaint was filed against Sidoo and nine other defendants in United States District Court in the Southern District of New York. It alleges that from at least 2006 to at least 2020, the defendants were involved in jacking up the stock prices of 17 different companies and then selling them to unsuspecting retail investors.

"Following each such fraud, Defendants divided most of their profits while reinvesting a portion thereof into their next pump-and-dump scheme," the complaint alleges. "Over the Relevant Period the Defendants garnered more than $145 million in illicit proceeds."

Sidoo is a former Canadian Football League player. He was stripped of his Order of B.C. in 2020 following his conviction in the college-admissions scandal.