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Tag: Ronald Salazar Morales

  • BULLETIN: 3 New Defendants In ‘Red Sea Management’ Case Have Been Arrested; New Charges Filed Against Original Defendants In Alleged Stock-Manipulation Scheme Over Which Purported One-Time ‘Consulate’ To Nonexistent Nation Of ‘New Utopia’ Allegedly Presided

    BULLETIN: Federal agents have arrested three new defendants in the alleged Red Sea Management stock-manipulation scheme. The arrests occurred in three U.S. states last week, and one of the new defendants already was in custody for a separate scam, federal prosecutors said.

    Arrested were Timothy Barham Jr., 43, of Henderson, Tenn.; Nathan Montgomery, 30, of Henderson, Nev.; and Ryan Reynolds, 39, of Dallas. Reynolds already was in custody. The SEC charged him in 2008 in a separate scam, according to records. He is a defendant in at least two separate SEC actions.

    Red Sea allegedly was operated by Jonathan Curshen, a convicted felon and the one-time purported “honorary counsel” of St. Kitts-Nevis to Costa Rica. Curshen, 46, of Sarasota, Fla., also has been referenced as a purported “consulate” to the bizarre, nonexistent nation of “New Utopia.”

    New Utopia has purported to be an underwater nation that will rise out of the Caribbean on concrete stilts.

    On March 10, the PP Blog received a bizarre communication from a person who purported to be “Mr. Protector” and complained about the Blog’s coverage of the New Utopia fantasy, which the SEC said was dreamed up by American Lazarus R. Long more than a decade ago.

    Long has described himself as a “Prince.” New Utopia, which purportedly is located undersea “approximately 115 miles west of the Cayman Islands,” has offered driver’s licenses for $140.

    The communication both invited and uninvited the Blog to witness the debut of the New Utopia “Palace” on a date uncertain.

    “How about we print your words out about New Utopia in size 12 font and then, when New Utopia Construction begins, we can invite you there in front of the Palace and watch you eat the words and the paper they are written on?” the person wrote.

    In the very next paragraph, however, the Blog was uninvited.

    “[H]ow will we know to not allow you to visit The Principality of New Utopia?” the person inquired. “We will find a way of that be assured.”

    Read the Justice Department statement on the new defendants and a superseding indictment against the original defendants. The original defendants included Curshen; attorney Michael Simon Krome, 49, of Long Island, N.Y.; Ronald Salazar Morales, aka “Ronny Salazar,” 39, of Costa Rica; Robert Lloyd Weidenbaum, 44, of Miami; and Eric Ariav Weinbaum, 37, and Izhack Zigdon, 47, both of Israel.

    The case was brought by elements of the interagency Financial Fraud Enforcement Task Force created by President Obama in November 2009.

  • UPDATE: Suspect Arrested Friday In Alleged Pump-And-Dump Scheme And Costa Rican Money-Laundering Caper May Have Link To Bizarre Underwater ‘Nation’ That Sells ‘Driver’s Licenses’ For $140

    Jonathan R. Curshen, one of six people charged criminally by federal prosecutors and sued civilly by the SEC last week in Southern Florida in an alleged penny-stock, securities fraud, wire-fraud and money-laundering caper, once was a purported “consulate” to the bizarre, nonexistent nation of “New Utopia,” according to web records.

    New Utopia was a fanciful “tax haven” allegedly dreamed up by Lazarus R. Long, an American who declared himself a “prince” and hatched a plan to form a “new country” that would “rise from the Caribbean on giant concrete platforms built on an underwater land mass,” according to filings in a 1999 case brought by the SEC.

    Long also is known as Howard Turney. He invited investors “to become charter citizens of the new country,” the SEC alleged 12 years ago.

    The SEC settled with Long years ago, and a federal judge ordered him to stop selling bonds and to pay $24,000 in disgorgement of ill-gotten gains. The penalty was waived because of his financial condition.

    New Utopia continues to have a website — one from which a purported “Prince Lazarus” holds forth. Last month, according to the site, the prince ventured that 2011 would be a big year for the nonexistent state, which oddly claims that it is accepting preorders for a coin “Currently out of production.”

    The coin is positioned as a limited “commemorative” worth 250 U.S. dollars. The site also solicits citizens to purchase the purported national flag of New Utopia for $80 and an “International Drivers license” issued by New Utopia for $140.

    One of the problems with the flag and New Utopia driver’s license is that the country itself does not exist and holds no dry land even if it did exist. Indeed, according to court records, the nonexistent principality is said to be located undersea “approximately 115 miles west of the Cayman Islands” and would rise out of the water only after concrete stilts were erected and an above-sea base were anchored to a submerged land base.

    Despite the bizarre incongruities, including the apparent assertion that New Utopia driver’s licenses are valid in all jurisdictions worldwide, citizens may use PayPal to purchase the items from New Utopia, according to the website. Other New Utopia trinkets, including a purported “ornament” bearing the likeness of Prince Lazarus, also are available from the purported nation’s online store.

    “I would like on this most auspicious New Years day to thank our citizens and other well wishers for their support throughout our years of struggle,” Prince Lazarus reportedly noted. “It has been a hard and challenging effort, which will be soon justified. I am not at liberty to disclose details, but this is the year when the building of the infrastructure of our great City/State will begin.”

    See earlier story on Curshen. See FBI new release on the charges filed against Curshen, Michael Simon Krome, 49, a securities attorney from Long Island, New York.; Ronald Salazar Morales, aka “Ronny Salazar,” 39, of Costa Rica; Robert Lloyd Weidenbaum, 44, of Miami; and Eric Ariav Weinbaum, 37, and Izhack Zigdon, 47, of Israel.