Connect-a-Jet CEO Found Guilty of Securities Fraud

Connect-a-Jet CEO Martin Cantu of Round Rock, TX, has been found guilty of two securities fraud charges, including one count of conspiracy to commit securities fraud and one count of securities fraud and/or aiding and abetting.

Cantu was convicted in the U.S. District Court, Northern District of Texas after a six-day trial. He and co-defendant Jason Wynn, a Lantana, TX stock promoter, were accused of making false and misleading statements to artificially inflate the price of Connect-a-Jet stock and personally profit from the misleading activity.

Connect-a-Jet was advertised and promoted as a real-time online booking system for private jets. According to the indictment, the company never developed the system beyond the initial concept and design stages.

Cantu allegedly sold 250,000 shares of Connect-a-Jet stock from August to October 2007, realizing a profit of almost $550,000. Wynn allegedly sold 4.2 million shares from August 2007 through January 2008 for a profit of $2.6 million. Wynn pleaded guilty earlier this year to a charge of conspiracy to commit securities fraud.

Cantu faces up to 20 years in prison and a $250,000 fine on the securities fraud charge, and up to five years in prison and a $250,000 fine on the conspiracy charge. He may also be ordered to pay restitution.

The Cogdell Law Firm is a boutique law firm focusing on large, complex business and criminal financial-related litigation, including white collar criminal defense, securities fraud, health care fraud investigation, criminal appeals and state criminal defense. When results matter most, contact Dan Cogdell at (713) 426-2244 or info@cogdell-law.com.

Categories: