MCCLAIN FOUND GUILTY OF SECURITUES FRAUD AND INSIDER TRADING

•November 28, 2014 • 2 Comments

Listen. Do you hear that? It’s the sound of McClain’s house of cards falling.

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23114 / October 15, 2014

Securities and Exchange Commission v. Stephen D. Ferrone, et al., Civil Action No. 1:11-cv-05223, USDC, N.D.Ill.

SEC Obtains Summary Judgment Against Defendants in Securities Fraud Involving Biopharmaceutical Company

The Securities and Exchange Commission announced that on October 10, 2014, the Honorable Elaine E. Bucklo of the United States District Court for the Northern District of Illinois granted the SEC’s motion for summary judgment and for partial summary judgment, respectively, against Defendants Douglas McClain, Sr. (“McClain Sr.”), of Fair Oaks, Texas, and Douglas McClain Jr. (“McClain Jr.”), formerly of Savannah, Georgia. The Court found that McClain Sr. violated the antifraud provisions of the federal securities laws by making misrepresentations and omissions and that McClain Sr. and McClain Jr. engaged in insider trading.

The SEC filed this action against the defendants in August 2011, alleging that McClain Sr., McClain Jr., Immunosyn Corporation (“Immunosyn”) Argyll Biotechnologies, LLC (“Argyll”), Stephen D. Ferrone, and James T. Miceli (“Miceli”) committed securities fraud in connection with materially misleading statements during 2006-2010 regarding the status of regulatory approvals for Immunosyn’s sole product, a drug derived from goat blood referred to as “SF-1019.” The SEC also charged Argyll, McClain, Jr., McClain, Sr., Miceli, Argyll Equities, LLC (“Argyll Equities”), and Padmore Holdings, Ltd. with insider trading.

The SEC’s complaint, filed in federal court in Chicago, alleged, among other things, that the defendants misleadingly stated in public filings with the SEC and in oral presentations that Argyll, Immunosyn’s controlling shareholder, planned to commence the regulatory approval process for human clinical trials for SF-1019 in the U.S. or that regulatory approval was underway. The complaint alleges that these statements misled investors because the statements omitted to disclose that the U.S. Food and Drug Administration (“FDA”) had already twice issued clinical holds on drug applications for SF-1019, which prohibited clinical trials involving SF-1019 from occurring.

After completion of discovery, the SEC moved for summary judgment, and for partial summary judgment, respectively, against McClain Sr. and McClain Jr. In granting the SEC’s motion for summary judgment, the Court found that McClain Sr. committed securities fraud by taking money from investors and failing to deliver Immunosyn shares and by telling investors that Immunosyn would secure approval for SF-1019 from the FDA in about a year and that the U.S. Department of Defense had purchased SF-1019. The Court also found that McClain Sr. and McClain Jr. engaged in insider trading by selling their Immunosyn stock based on the material, non-public information that the FDA had issued clinical holds on drug applications for SF-1019. The Court found that McClain Sr. and McClain Jr. violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5.

The Court will determine the appropriate remedies against McClain Sr. and McClain Jr. at a later date.

http://www.sec.gov/litigation/litreleases/2014/lr23114.htm

Victim Speaks Out, While Cult Leader Awaits Trial

•October 10, 2014 • Leave a Comment

Cult Child is based on the recollections of a real-life child abuse survivor, whose physical and sexual maltreatment were allegedly abetted by a still-functioning Christian organization, known variously as The Move of God, The Movement, or more commonly just The Move.
The book is especially timely as former Move leader Doug McClain Sr. awaits trial in Bexar County, Texas, charged with conning a paraplegic man out of his entire life’s savings. McClain Sr., who already has millions in civil judgments against him, has also been linked to a shell corporation that allegedly smuggled tons of cocaine into the US on private planes. McClain’s son, Doug McClain Jr. was previously convicted for orchestrating a different multi-million-dollar fraud.

Click here for the entire article:  http://www.patheos.com/blogs/nolongerquivering/2014/10/victim-speaks-out-while-cult-leader-awaits-trial/

A little update

•August 6, 2014 • 1 Comment

The DA’s office has stated that August 19th is the final pre-trial appearance. This is when they will set the date for trial, likely in September. The defense has gotten away with treating this as a game, canceling appearances and important court dates at the last moment. But as a good friend pointed out, this is criminal court, not civil. Doug has made a lifestyle out of ignoring civil courts AND their rulings. But that dog don’t hunt in criminal court. Doug been indicted by Grand Jury for two 1st degree felonies. This isn’t a mere multi-million dollar class action civil suit, the likes of which he so adeptly ignores.

Attached is a link to the Bexar County case summary.

http://apps.bexar.org/search/FullCase.html?id=CR00000000001534730D2272014CR0451#history

Some interesting information about 1st degree felonies in the State of Texas:

First Degree Felonies are among the most serious crimes in Texas, second only to capital felonies. Examples of crimes that are considered First Degree Felonies include but are not limited to the following:

Aggravated robbery
Aggravated assault of a public servant
Aggravated kidnapping
Aggravated sexual assault
Burglary of a habitation with the intent to commit or with the commission of a felony
Arson of a habitation
Causing serious bodily injury to a child, elderly person, or disabled person
Escape from custody with serious bodily injury
Murder
Solicitation of capital murder
Trafficking of children under the age of fourteen
Consequences of a First Degree Felony Conviction in Texas

Conviction of a First Degree Felony in Texas carries harsh penalties, including the possibility of life imprisonment, imprisonment for 5 to 99 years, and a fine of up to $10,000, with the possibility of community supervision (adult probation). Prosecutors can seek to enhance your felony charge to a more serious felony depending on the particular crime being charged and your criminal history. The Texas Penal Code has broad sentencing guidelines for criminal offenses. The exact sentence will be in the judge’s discretion, with recommendations from the prosecution and possibly the jury.
In some cases, community supervision or probation may be an option for a First Degree Felony conviction, especially for a first conviction, if the sentence pronounced is no longer than 10 years. Community supervision suspends a defendant’s jail or prison sentence in return for the fulfillment of certain conditions to be met by the defendant. These conditions are set by the court and usually involve reporting on a regular basis to a community supervision officer, allowing regular home inspections, holding a regular job, paying fines, and making other restitution. If the defendant does not comply with the conditions, then on a motion to revoke the supervision can be revoked, and the defendant can be sentenced for a prison term for up to the original maximum sentence.

Community supervision terms can be for as long as ten years for felony convictions. The defendant may be eligible for early release from supervision if he or she meets all the conditions during the first third of the sentence term. Community supervision may not be available for defendants sentenced to more than 10 years, those having previous felony convictions, or those having a conviction for a violent crime such as capital murder, indecency with a child or aggravated robbery (known as 3g offenses in the Texas Penal Code).

Defendants convicted of serious felonies or repeated felonies will be most likely to have to spend some time in a Texas county jail or prison. Sentences can run cumulatively, so that when one sentence ends the next sentence begins, or concurrently, running at the same time. Defendants will receive credit for time spent in jail while awaiting trial.

Conviction of a First Degree Felony or any felony offense can have devastating consequences to you and your loved ones. In addition to possible jail or prison time and substantial fines, having a felony conviction on your permanent criminal record can prevent you from getting a job or from being able to improve your education. It can result in your not being able to vote, to own a firearm, or even to find housing. You may also experience considerable financial problems.

Criminal felony charges of any kind are a very grave matter and should be taken seriously. The penalties for felony conviction are severe and can have profoundly negative consequences that can be permanently damaging to your personal and professional life.

Cults, Drug Trafficking, Organized Crime & The Pulpit

•April 3, 2014 • 3 Comments

 

Tampa ‘Black Ice” drug operation tied to organized crime
Posted on April 1, 2014 by Daniel Hopsicker
Doug McClain learned the ins and outs of financial fraud while working for Robert Colgin Wilson, who—far more than “The Wolf of Wall Street”—exemplified the role of American organized crime in financial fraud during the last quarter of the 20th Century.

Wilson was no fly by night. His roots ran deep. When he was convicted of securities fraud in the mid-70’s, his lawyer during the trial and appeal was the same Dallas attorney, Emmett Colvin, who a decade earlier represented Jack Ruby during his trial for the murder of Lee Harvey Oswald.

When the Tampa office of Homeland Security Investigations (HSI) partnered with McClain and other members of organized crime in a still-unexplained drug trafficking operation that brought tons of cocaine into the U.S. between 2003 and 2008, they were getting a known quantity.

When that effort went awry, Doug McClain’s last big play occurred with the hurried stripping out of a coal mining company in the coal fields of Kentucky—between July 2010, when he and his crew became the owners of eight separate coal mines—and May 2011, when the federal government stepped in and call a halt to the thieving.

Continue reading →. http://www.madcowprod.com/2014/04/01/black-ice-organized-crime/#more-5881

Con man for Christ headed criminal hyena pack

•March 24, 2014 • 2 Comments

Another eye-opening expose by Daniel Hopsicker. Hopsicker has been researching, investigating and writing about McClain and McClain Jr. for years.

March 24 2014
by Daniel Hopsicker

Doug McClain Sr’s financial fraud career as a a grifter, racketeer, and flimflam man can be traced back more than two decades, and likely extends much further into his past.

The so-far unanswered question about him has been where he first acquired powerful patrons whose clout could-and did-keep him out of jail despite his record for flagrant financial fraud.

While the ultimate answer may not yet be clear, for sheer greed, brazen theft and raw carnality-committed with the protection and apparent blessing of former leaders in both major political parties- it would be hard to top McClain’s stint during the early 1990’s at International Profit Associates (IPA) in Chicago.

read the story here:

http://www.madcowprod.com/?p=5711

Has “The Move” Opened a Branch in San Antonio?

•March 21, 2014 • 1 Comment

Apparently, not even evidence and personal testimony of former -and even current- cult members as to McClains’s history as a leader and “elder” in their cult, makes a dent on at least one devoted Doug McClain fan. Which would just be sad and slightly amusing, if this man weren’t in “the pulpit”.

Doug has given this preacher money and fed him on champagne wishes and caviar dreams for years. But every effort to encourage this man to see what is towering over him, destroying his ministry, and leading Doug to more victims is abjectly rejected, out of hand. And the ones actually trying to help him are called haters, scum, or Jezebel; and are insulted, mocked, and derided.

This preacher doesn’t seem to care much about his own sheep who have lost untold hundreds of thousands to McClain’s scams, thanks to his personal endorsement of this traveling cult leader. Nope. He seems only to care that nothing stop McClain from keeping his promises to pour millions of dollars into his lap, “as soon as this big deal comes through”

Which would be sad, if he weren’t in the pulpit.

Jesus loves His sheep. And when preachers hand their pulpits and sheep pens over to well-documented cult leaders, conmen, thieves, and liars, such things need to stop and His Church protected from harm. Shepherds are supposed to PROTECT their flocks from wolves, not open up the gate and ring the dinner bell.

A man or woman who cannot or will not discern between spirits has no place in the pulpit.

Matthew 5: 11-13. “Blessed are you when people insult you, persecute you and falsely say all kinds of evil against you because of me. Rejoice and be glad, because great is your reward in heaven, for in the same way they persecuted the prophets who were before you.

“You are the salt of the earth. But if the salt loses its saltiness, how can it be made salty again? It is no longer good for anything, except to be thrown out and trampled underfoot.

The Beginning of the End of a Career Criminal

•March 21, 2014 • Leave a Comment

Another eye opening article by Daniel Hopsicker.

The Vanishing:
Christian Cult’s Airport Disappears

March 21 2014
by Daniel Hopsicker

Douglas McClain Sr, charged with financial fraud against the elderly after allegedly swindling $200,000 from an 74-year old paraplegic, befriending his victim by acting as if her were a Christian minister, instead of a sociopathic con man, showed up in court for the first time Tuesday in San Antonio for a pre-trial hearing, appearing unsettled and uncertain, according to a source close to the case.

But even as news trickled out from the courtroom in San Antonio, where the case was postponed for a month, an even more startling development was transpiring elsewhere.

The NEW YORK TIMES had once reported that the cult owned “a fleet of planes.”

“There is something you’re missing here,” another former cult member told me.

“The farms’ weren’t generating any money. When I lived there we were shooting moose illegally just so we’d have food. Yet the cult owned at least a dozen airplanes at any one time. When you have a group that’s got no money, where’s the money coming from?”

read the story here:

http://www.madcowprod.com/?p=5623

 
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