Company cofounded by Nancy Pelosi's son charged with fraud
The SEC charged four individuals with fraud, including former New Mexico Gov. Toney Anaya, and suspended trading in the company’s stock. Pelosi owned over 10 million shares in the company in 2009.
Natural Blue, a company cofounded by Paul Pelosi, Jr. to focus on “environmentally-friendly” investments, has been charged with fraud by the SEC. Pelosi had served as the company’s president and chief operating officer. Also involved is a former Democrat governor. Elizabeth Harrington reports in the Washington Free Beacon:
The SEC said Wednesday the company was “secretly controlled” by James E. Cohen and Joseph Corazzi, both of whom had previous fraud convictions. Corazzi violated federal securities laws and was barred from acting as an officer or director of a public company. Cohen was previously incarcerated for financial fraud.
Cohen and Corazzi said they were “outside consultants,” but according to the SEC, they actually controlled Natural Blue’s business decisions “without disclosing their past brushes with the law to investors.” The pair made hundreds of thousands of dollars off the company.
“Cohen and Corazzi concealed their involvement through a so-called ‘consulting’ agreement, but their influence over the issuer spread much further,” said Andrew J. Ceresney, director of the SEC’s Enforcement Division. “Investors in Natural Blue had a right to know who was running the company behind the scenes.”
The SEC suspended trading in Natural Blue stock. A notice filed in the Federal Register on Wednesday by Jill M. Peterson, assistant secretary of the SEC, revealed that the company has not filed any periodic reports, which are required by law, with the SEC in four years.
“It appears to the Securities and Exchange Commission that there is a lack of current and accurate information concerning the securities of Natural Blue Resources, Inc. because it has not filed any periodic reports since the period ended September 30, 2010,” Peterson said, in the order announcing suspension of trading.
There is conflicting information as to Pelosi’s status with the company:
According to Bloomberg Businessweek, Pelosi served as president and chief operating officer of Natural Blue Resources, Inc. until January 11, 2010. Joseph Montalto is listed as the current president.
However, the Mountain View Telegraph cited Pelosi as Natural Blue’s president last year, and Anaya was still leading the company as chairman and CEO at this time.
Anaya, by the way, was a Democrat Governor of New Mexico. Another case of Democrats, “environmentally friendly” companies, and fraud.
Hat tip: Ed Lasky