An Everett man pleaded guilty on April 12, 2023 to exerting secret control over a Massachusetts-based company, Cannabiz Mobile, Inc.

 

BOSTON – An Everett man pleaded guilty on April 12, 2023 to exerting secret control over a Massachusetts-based company, Cannabiz Mobile, Inc., as part of a pump-and-dump securities fraud scheme. https://www.justice.gov/usao-ma/pr/everett-man-pleads-guilty-securities-fraud

Christopher R. Esposito, 56, pleaded guilty to one count of securities fraud before U.S. District Court Judge Patti B. Saris who scheduled sentencing for July 26, 2023. Esposito was charged in August 2022.

Esposito and a co-conspirator, Anthony Jay Pignatello, worked together between 2012 and 2015 to conceal their control over Cannabiz Mobile, Inc. and to use backdated promissory notes to fraudulently obtain free-trading shares in the company. Among other steps taken to conceal their control, Esposito caused another individual to be installed as the company’s chairman, president, and CEO.  In reality, the executive reported to Esposito. Esposito and Pignatello then arranged for a promotional campaign in October 2014 to artificially inflate the value and trading volume of Cannabiz Mobile’s stock so that they could secretly sell their shares.  In total, between September 2014 and February 2015, Esposito personally sold over 1.3 million shares fraudulently obtained as part of the scheme.

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