Ex-SEC lawyer Offill found guilty in fraud case [The Dallas Morning News]
Jan. 29 -- Phillip W. Offill Jr. made a name as a securities cop chasing fraudsters.
Thursday, he became a white-collar convict.
A Virginia jury convicted Offill on nine counts of wire fraud and a single count of conspiracy 10 months after federal officials indicted him. The 51-year-old Dallas attorney faces up to $15 million in fines and 185 years in federal prison.
Sentencing is scheduled for April 16 .
"It is a sad day when a former U.S. Securities and Exchange Commission attorney uses what he learned in the government to later defraud the investing public," said Assistant Attorney General Lanny A. Breuer in a statement.
Offill has steadfastly declared his innocence. Kevin Brehm , Offill's defense counsel, said his client would appeal shortly after sentencing.
"The government failed to prove that Mr. Offill committed any of the crimes charged," Brehm said.
Offill and 10 other men around the country had been targeted in the investigation. Eight of them have been convicted and sentenced to prison terms of up to 10 years. Two others have pleaded guilty and are awaiting sentencing.
Prosecutors said the group conspired to use faxes, e-mails and bogus news releases to "pump" stocks they owned, only to "dump" their shares for millions in profit after investors bid prices higher on the false information. The shares, worth only a few cents in some cases, traded on over-the-counter markets.
The companies included Emerging Holdings Inc. , MassClick Inc. and China Score Inc. Offill also earned thousands in fees for doing the stock transactions, authorities said.
"He and his co-conspirators made millions while innocent investors were left with stock in worthless companies," said U.S. Attorney Neil H. MacBride of the Eastern District of Virginia in a statement.
The criminal convictions follow two SEC lawsuits that detailed how Offill was an integral player in helping evade stock registration laws to set up the pump-and-dump scams. He also lost his Texas law license.
"We congratulate the prosecution and look forward to proceeding in court with our pending charges against Mr. Offill," said John Nester , spokesman for the SEC .
Offill spent 15 years with the SEC in Fort Worth before moving to private practice in Dallas .
In 2008, he was found to be in civil contempt for his role in helping individuals evade a federal asset freeze in a fraud case involving Dallas -based Amerifirst Funding. Offill had helped broker the sale of a fake Picasso painting; he was forced to repay money that had been sent to him as a retainer.
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