Two Executives Arrested for Pump and Dump Securities Fraud Scheme

Dennis Mancino, the President and Chief Executive Officer of HD View 360, Inc. (“HDVW”) and William Hirschy, the Chief Executive Officer of WT Consulting Group, LLC, were arrested yesterday on charges that they conspired to commit securities fraud by manipulating the price and trading volume of HDVW, a publicly-traded company that purported to distribute and install security surveillance systems.  The defendants are scheduled to make their initial appearances this afternoon in the Southern District of Florida at the federal courthouse in Miami.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James D. Robnett, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), announced the charges.  

“As alleged in the complaint, the defendants engaged in a classic pump and dump designed to defraud the investing public and make millions of dollars for themselves by manipulating the price and volume of a publicly traded stock,” stated United States Attorney Donoghue.  “The charges announced today demonstrate the commitment of this Office, together with our law enforcement partners, to protecting the investing public by prosecuting pump and dump fraudsters.”  Mr. Donoghue thanked the Securities and Exchange Commission, both the New York Regional Office and the Washington, D.C. Office, for their significant cooperation and assistance during the investigation. 

“As alleged, Mancino and Hirschy tricked their victims into investing in HDVW under false pretenses, profiting from an orchestrated loss to those who unwittingly participated in this scheme,” stated FBI Assistant Director-in-Charge Sweeney.  “People have the right to trade in an uncorrupted market, and today’s charges are proof of the FBI’s continued determination to root out those who unlawfully interfere with this process.”

According to court filings, between July 2017 and February 2018, Mancino and Hirschy engaged in a scheme in which they agreed to artificially control the price and trading volume of shares in Mancino’s company, HDVW.  As part of the scheme, the defendants conspired to “pump” HDVW’s stock price by executing fraudulent trades and having HDVW issue weekly press releases and then, once HDVW’s stock price had increased, to “dump” the stock for a multi-million dollar profit.  The defendants further agreed to pay kickbacks to stock brokers who would execute manipulative trades designed to increase the price and trading volume of HDVW’s stock.  In furtherance of the scheme, the defendants executed numerous fraudulent matched trades designed to create the false appearance that HDVW’s stock price had risen as a result of genuine market demand. 

The charges in the complaint are merely allegations, and the defendants are presumed innocent unless and until proven guilty.

The case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Jacquelyn M. Kasulis, Michael T. Keilty and David Gopstein are in charge of the prosecution. 

The Defendants:

DENNIS MANCINO
Age: 46
Residence: Miami, Florida

WILLIAM HIRSCHY
Age: 41
Residence: Ocala, Florida

E.D.N.Y. Docket No. 18-MJ-184