Six indicted on securities fraud charges

MIAMI — Two Palm Beach County men and a Miami resident have been indicted on federal securities fraud charges stemming from an FBI sting.

The Palm Beach County men are stock promoters Efirm Gjonbalaj, 35, of Boynton Beach and Western Financial Services Inc., and Mark Foglia, 52, of Hypoluxo and Real Asset Management LLC. Ron Williams, 57, is the Miami resident.

Three others, Virgil Williams, 62, of Escondido, Calif., Rex Morden, 57, of Henderson, Nev. and William Haynes, 42 of Palm City also were caught in the sting.

According to the indictments, all six paid kickbacks to an FBI agent posing as a manager of a hedge fund called Fillmore Capital. In return for the kickback, the hedge fund agreed to buy the promoters’ stocks.

If convicted, Williams faces a maximum of 20 years in prison and a $250,000 fine.  Foglia, Virgil Williams, Morden, Haynes and Gjonbalaj each face a maximum of 20 years and $500,000 in fines on securities fraud charges. Gjonbalaj and Haynes additional prison time and fines if convicted on conspiracy and fraud charges.

At the same time, the Securities and Exchange Commission sued Haynes, Foglia, Virgil Williams, Morden and Gjonbalaj and two others — Vincent Cammarata and Sean P. Sheehan — for securities fraud. The SEC seeks injunctions against the defendants that would bar them from future violtions of federal securities laws, force them to surrender any earnings from the scam and civil fines.