Justice Department's indictment of Semion Mogilevich
Justice Department's indictment of Semion Mogilevich
Justice Department's indictment of Semion Mogilevich
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(b) On or about November 20, 1997, approval was obtained from the OSC to<br />
register for sale approximately 7.2 million common shares to the investing public which<br />
raised approximately $100 million (CDN) in proceeds ("1997 Offering"). The $100<br />
million raised was used to fund and promote the fraudulent operations <strong>of</strong> the company and<br />
to carry out the scheme to defraud. This stock was sold in two stages, as follows:<br />
(1) 3.2 million shares <strong>of</strong> YBM stock were sold to the public for $16.50<br />
(CDN) share in a public <strong>of</strong>fering approved by the OSC and<br />
completed on November 26, 1997, which generated approximately<br />
$52 million (CDN); and<br />
(2) 4 million shares <strong>of</strong> YBM stock, at $12 (CDN) per share, were<br />
issued in connection with a private placement <strong>of</strong> convertible notes<br />
on or about August 20, 1997, which were purchased primarily by<br />
institutional investors. This raised approximately $48 million<br />
(CDN). The notes were convertible into the 4 million shares <strong>of</strong><br />
YBM common stock on November 20, 1997.<br />
41. From approximately July 1994, when PRATECS stock was sold in the<br />
IPO at $.10 (CDN) per share, until approximately March 1998, when PRATECS/YBM’s stock<br />
reached a peak <strong>of</strong> $20.15 (CDN) per share, the price <strong>of</strong> stock rose approximately 2,000 percent in<br />
less than four years. On May 13, 1998, when the trading in YBM stock was suspended by the<br />
OSC, the stock was trading at approximately $14.35 (CDN) per share.<br />
I. EFFORT TO EXPLOIT THE UNITED STATES SECURITIES MARKETS<br />
42. In furtherance <strong>of</strong> the scheme to defraud, defendants MOGILEVICH,<br />
31