UPDATE 1-U.S.-Canadian man charged for Cynk trades, $300 mln fraud

Tue Jun 23, 2015 6:23pm EDT
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* Gregg Mulholland arrested during Phoenix layover

* Cynk market cap soared past $6 billion without explanation (Adds allegations, Cynk background, case citations, byline)

By Jonathan Stempel

NEW YORK, June 23 (Reuters) - A dual U.S. and Canadian citizen has been criminally charged with running a stock manipulation fraud that generated $300 million of illegal profit, and included a pump-and-dump scheme that caused the market value of little-known Cynk Technology Corp to rocket past $6 billion.

Gregg Mulholland, 45, is charged with securities fraud and money laundering conspiracies following his arrest on Tuesday at Phoenix International Airport during a layover of his flight to Mexico from Canada.

Mulholland's arrest and criminal charges were announced by Acting U.S. Attorney Kelly Currie in Brooklyn, New York.

The U.S. Securities and Exchange Commission filed a related civil lawsuit against Mulholland, who authorities said lives in Vancouver, British Columbia, and San Juan Capistrano, California.

It was unclear whether Mulholland has hired a lawyer.

Last July, U.S. authorities suspended trading in Cynk, a development stage company with no revenue or assets, after its share price soared without explanation to $21.95 from 6 cents in less than a month.   Continued...