Case 0:13-cr-60240-WPD Document 1 Entered on FLSD Docket 09/27/2013 Page 1 of TB

Sep 26, 2013

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
13-60240-CR-DIMITROULEAS/SNOW
C A SE N O :
18U.S.C.j 1341
15U.S.C.j78j(b)
15U.S.C.j78ff(a)
17C.F.R.j240.10b-5
18U.S.C.j2
18U.S.C.j 981(a)(1)(C)

UNITED STATES O F AM ERICA

V S.

RICHARD ALTOM ARE,

D efendant.
/

INDICTM ENT

TheGrand Jury chargesthat:

GENER AL ALLEGATIONS

Atalltimesrelevantto thisIndictm ent:

SunsetBrands,Inc.(''SSBN'')wasaNevada comoration thatpurported to be a

snancialservicescom pany which acquired and invested in realestateand antiquities.

SSBN 'Scomm onstock waspublicly quoted onthePinkOTC M arkets, lnc.,an inter-

dealerelectxonicquotation and trading system intheover-the-countersecuritiesmarketcomm only

referred to asthe ''Pink Sheets.''

3. DefendantRICHARD ALTOM ARE wasastock prom oterforSSBN .

4. lssuerDirect,atransferagentbased in M orrisville, North Carolina,acted asSSBN'S

transferagent.
Case 0:13-cr-60240-WPD Document 1 Entered on FLSD Docket 09/27/2013 Page 2 of 9

C O UN T 1
M AIL FM UD
(18U.S.C.j1341)
1. Paragraphs1through 4 oftheGeneralAllegationssection ofthisIndictm entarere-

alleged and incom orated by referenceasiffully setforth herein.

2. From in oraround January 2013 through in or around M arch 2013, in Broward

County,in the Southern DistrictofFlorida,and elsewhere,thedefendant,

RICHARD ALTOM ARE,

didknowinglyandwithintenttodefrauddeviseandintendtodeviseaschemeandartitscetodefraud

and to obtain money and property by means of m aterially false and fraudulent pretenses,

representations,andpromises,knowingthatthepretenses,representations, andprom iseswerefalse

and fraudulentwhen m ade.

PURPOSE OF TH E SCH EM E AND ARTIFICE

3. ThepumoseoftheschemeandartificewasforltlcllAlm ALTOM ARE tounjustly

emich him selfbyengaging inthefraudulentm anipulationofSSBN'Sstock by, am ong otherthings:

(a)improperlyinducinganindividualtopurchasesharesofSSBN commonstock in exchange

forcompensation;(b)inducingtheinvestingpublictopurchasesharesofSSBN commonstock
based on the artitscialtradingvolume and artificially inflated stock price;and (c)issuing press
releasesto induce investorsto purchasesharesofSSBN common stock atthe artificially intlated

stock price.

2
Case 0:13-cr-60240-WPD Document 1 Entered on FLSD Docket 09/27/2013 Page 3 of 9

M ANNER AND M EANS O F THE SCHEM E AND ARTIFICE

Themnnnerr dmeansbywhichm cHAM ALToM AM soughttoaccomplishtheobject

ofthe scheme and artificeincluded, butwasnotIimited to,thefollowing:

4. Beginning in or around January 2013, RICH ARD ALTO M ARE discussed

manipulating thepublicm arketforsharesofSSBN comm on stock with an FBIconfidential

source (''the CS'') RICH ARD ALTO M ARE discussed a pay-to-play schem eto artificially
increasethetrading volum eandpriceforsharesofSSBN com mon stock. Thereafter,RICHARD

ALTOM ARE participatedinaseriesoftelephonecallsandmeetingswiththeCS toplan execute,

,

and attemptto execute the schem e and artifict.

5. OnoraboutM arch 7,2013,RICH ARD ALTO M ARE m etwiththeCStodiscuss

theunlawfulscheme.RICH ARD ALTO M ARE proposed a false and fraudulentpromotion to

increase the trading volum e and price forshares of SSBN comm on stock to give the investing

public the false impression thatSSBN'Sstock was rising and thatthere wasa public m arketfor

SSBN stock.RICHARD ALTO M ARE prom ised to compensate the CS with sharesofSSBN to

inducehiscooperation inthescheme. Thefalseand fraudulentpromotionwasplarmedtocoincide

with the issuance ofSSBN pressreleases.

On or aboutM arch 8,2013,RICH ARD ALTOM ARE agreed to bolster the

im proper buying program by agreeing to cause SSBN to issue one or more press releases

announcingpositivenewsaboutthe com pany, which would betimed to follow and coincidew ith

the illegally induced purchasing by the CS. The purpose ofthe press releaseswas to give the

investingpublicthefalseim pressionthatthepurchaseofSSBN stockwasinducedbypositivenews

aboutthecompany and to concealthem arketmanipulation scheme from regulatory authorities.

3
Case 0:13-cr-60240-WPD Document 1 Entered on FLSD Docket 09/27/2013 Page 4 of 9

7. On or about M arch 15, 2013,RICH ARD ALTOM ARE m etwith the CS in

Broward County, Florida and provided the CS with an advance copy of an SSBN press

release describing an increase in theappraised value ofSSBN'Sassets.

8. On oraboutM arch 26, 2013,RICH ARD ALTOM ARE issued and caused tobe

issued apressreleaseonbehalfofSSBN containinginform ationwhichwaspreviously non-public.

EXECUTIO N AND ATTEM PTED EXECUTION OF TH E SCH EM E AND ARTIFICE

9. On oraboutM arch 22,2009,the defendant,RICHARD ALTOM ARE,forthe

pup ose ofexecuting andin furtheranceofthe scheme and artificeto defraud and toobtain m oney

and property by m eans of false and fraudulent pretenses,representations,and prom ises, did

knowingly cause to be delivered certain mailmatterby a private orcomm ercialinterstate canier

according to the diredions thereon,nam ely,a stock certifcate for70,000 free-trading sharesof

SSBN sentvia FederalExpressto an addressin W eston,Florida as kickback paym entforthe

purchaseofsecurities,in violation ofTitle 18,United StatesCode,Sections1341 and 2.

C O UN T S 2-4
SECURITIES FRAUD
(15U.S.C.j78j(b)and 78ff(a);
17C.F.R.j 240.10b-5)
Paragraphs 1though 4 oftheGeneralAllegationssection ofthisIndictm entare re-

alleged and incop orated by referenceasiffully setforth herein.

2. From in oraround Janumy 2013 through in oraround M arch 2013, in Broward

County,in theSouthern DistrictofFlorida,and elsewhere,thedefendant,

R IC H A R D A LTO M A RE ,

4
Case 0:13-cr-60240-WPD Document 1 Entered on FLSD Docket 09/27/2013 Page 5 of 9

did knowingly,willfully,and unlaw fully,by the use ofmeansand instrumentalities ofinterstate

comm erce,them ails,andthefacilitiesofnationalsecuritiesexchanges,directlyand indirectly,use

and em ploy manipulativeand deceptive devicesand contrivancesin colmection with thepurchase

and saleofsecurities,and:(a)employ adevice,schemeand artificeto defraud;(b)makeuntrue

statementsofm aterialfactsandom itto statem aterialfactsnecessarytom akethestatementsmade,

inlightofthecircumstancesunderwhichtheyweremade,notmisleading;and(c)engagein acts,
practices and coursesofbusinesswhich would operate asa fraud and deceitupon any person,in

connection with thepurchaseand saleofsecurities.

PUR POSE OF TH E SCH EM E AND ARTIFICE

Thepuposeoftheschemeandartiicewasforltlclu ltD AtzrroM AM tounjustly

emich him selfby engaging in m anipulativeand deceptivetradingpracticesin connection withthe

purchase and sale ofSSBN com mon stock.

M ANNER AND M EANS OF THE SCHEM E AND ARTIFICE

4. Paragraphs4 through9ofCount1arereallegedand incorporated byreferenceherein

asadescription oftheschem eand artifice.

5. lnfurtheranceoftheschem eandartifice,RICHARD ALTO M ARE usedm eansand

instrumentalities ofinterstate comm erce,including interstate wire com munication facilities and

private com m on carriers.

SECURITIES TM NSACTIONS

On oraboutthedatesenumeratedasto eachcountbelow,in BrowardCounty,inthe

Southern District of Florida, and elsewhere,the defendant, RICHARD ALTOM ARE , did

knowingly,willfully,and unlawfully,by the use of m eans and instm m entalities of interstate

5
Case 0:13-cr-60240-WPD Document 1 Entered on FLSD Docket 09/27/2013 Page 6 of 9

comm erce,themails,andthefacilitiesofnationalsecuritiesexchanges,directly and indirectly, use

and employm anipulative and deceptivedevicesand eontrivancesin conntdion with thepurchase

andsaleofsecurities,and:(a)employ adevice,scheme and artificeto defraud;(b)makeuntrue

statem entsofm aterialfactsand om itto statematerialfactsnecessaryto makethestatem entsm ade,

inlightofthecircumstancesunderwhichtheyweremade,notmisleading;and(c)engagedinacts,
practicesand coursesofbusinesswhich would operate asa fraud and deceitupon any person, in

connection with thepurchaseand saleofsecurities,asm oreparticularly describedin each countset

forth below :

CO UNT APPROX.DATE DESCRIPTIO N OF SECURITIES TRANSACTION

2 M arch 15,2013 Purchase and saleof2,150 sharesof

SSBN com mon stock
3 M arch 26,2013 Purchaseand saleof2,000 shares of
SSBN com m on stock
4 M arch 26,2013 Purchaseand saleof 1,500 sharesof
SSBN comm on stock

lnviolationof Title 15,United StatesCode,Section78j(b),Title 15,United StatesCode,

Section 78ff(a);Title 17,CodeofFederalRegulations,Section 240.10b-5;and Title 18,United
StatesCode,Stdion 2.

FO RFEITURE
(18U.S.C.j981(a)(1)(C))
The allegations in Counts 1 through 4 of this lndictm entare realleged and fully

incorporatedbyreferencehereinforthepum oseofallegingforfeituretotheUnitedStatesofAmerica

ofcertain property in which thedefendanthasan interest.

6
Case 0:13-cr-60240-WPD Document 1 Entered on FLSD Docket 09/27/2013 Page 7 of 9

Upon conviction of any violation alleged in this lndictment, RICHARD

ALTOM ARE shallforfeitto the United States any property constituting,orderived from ,any

proceedswhich he obtained,directly orindirectly,astheresultofsuch violation.

A1lpursuanttoTitle18,UnitedStatesCode,Section981(a)(1)(C),madeapplicablethrough
Title28,United StatesCode,Section 2461.and theproceduressetforth atTitle21,United States

Code,Section 853.

A TRUE BILL

Fokk sox

t & Xba
W IFREDO A .FERR ER
U N ITED STATES A T O RN EY
)
%

ALEJANDkO 0.SOTO
ASSISTANT UNITED STATES ATTORNEY
 UNITED STATES
Case 0:13-cr-60240-WPD Document 1 DI DISTRICT
Entered COURT
SOUTHERN STRICTon
OFFLSD Docket 09/27/2013 Page 8 of 9
FLORIDA

UNITED STATES OF AMERICA CASE NO.

VS.
C ERTIFICATE O F TRIA L ATTO RN EY*
RICHARD ALTOMARE,

Defendant.
/ Superseding Case Inform ation:

CourtDivision:(sel
ectOne) New Defendantls) Yes - No -
NumberofNew Defendants
Miami Ke W est Totalnumberofcounts
x FTu w) : FTp
Ido hereby cedifythat:
IhavecarefullyconsideredtheallegationsW theindictm#n
Probable witnesses and the Iegalcomplexlties ofthe Indl
t,thenumberQfdefendants,thenumberof
ctment/lnformabon attached hereto.
2. Iam pware thatthe information suppli
ed gn thij qtaterpentwillbe relied upon bv the Judqes ofthis
Coudlnsettinn theircalendarsandschedullngcrlmlnaltrlalsunderthe mandate oftheSpeed- yTrialAct,
Title 28 U.S.ClSection 3161.
3.
Ini
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reg
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gean(
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Y/o
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This casewilltake A days forthe padiesto try.
5. Pleasecheckappropriate categoryandNpeofoffenseIisted bel
ow:
(Checkonlyone) (Checkonlyone)
0 to 5 days Petty
6 to 10 days M inor
11 to 20 days M isdem .
21 to 60 days Felony
61days and over
6. Hasthiscasebeen previouslyfiled inthi
s DistrictCoud? (YesorNo) Nn
Ifyes:
Judge: Case No.
(Attachcopy9fdisposi
H ti
vegrdej
asacomplalntbeenfiled Inthlsmatter? (YesorNo) Nn
Ifyeq:
Maglstrate Case No.
Related Misc#llaneous numbers:
Defendantls)lnfederalcustodyasof
Defendantts)Instatecustodyasof
Rule 20 from the Di
strictof
Isthi
sa potentialdeathpenaltycase?(YesorNo)
Doesthiscaseoriginatefrom a matterpendinginthe NorthernRegionofthe U.S.Attorney'sOfficeprior
to October14,2G03? Yes R No

8. Doesthiscase oriqinatefrom a matterpending in the Central egi

onofthe U.S.Attorney'sOffice prior
to September1,2D07? Yes X No

'an o 0. Soto
Alef .
ASSISTANT UNITED STATES ATTORNEY
Florida BarNo./coud No.0172847

*penaltySheetts)attached REV4/8/08
Case 0:13-cr-60240-WPD Document 1 Entered on FLSD Docket 09/27/2013 Page 9 of 9

UNITED STATES DISTRICT CO URT

SOUTH ERN DISTRICT OF FLORIDA

PEN ALTY SH EET

D efendant's N am e:R IC H A R D A LTO M AR E

C ase N o:

Count #:1

M ailFraud

Title 18.United StatesCode.Section 1341

*M ax.Penalty: Twenty(20)years'imprisonment
Counts #:2-4

SecuritiesFraud
Title 15.United StatesCode.Section 78i(b)and 78ff(a1'
'
.Title 17 C.F.R $240.10b-5
jj

*M ax.Penalty: Twentytzo)years'imprisonmentastoeachcount

Count #:4

Count #: