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La Jolla Couple Indicted, Sued by SEC in Alleged $100 Million Stock Scheme

The SEC also filed a civil case targeting the same alleged scheme.

Overview

  • A federal grand jury in San Diego returned a 24-count indictment alleging conspiracy, securities fraud, conspiracy to launder monetary instruments, and money laundering tied to RB Capital Partners.
  • Prosecutors say the scheme began in 2020 and involved promoting six microcap stocks—Optec International, Sunshine Biopharma, BlockQuarry, Solar Integrated Roofing, Cyberlux, and Ilustrato Pictures—while secretly selling the couple’s own shares.
  • The SEC’s parallel lawsuit focuses on one of the companies and alleges massive, undisclosed sales as the couple promoted the stock; investigators acknowledged assistance from FINRA’s Criminal Prosecution Assistance Group.
  • The defendants pleaded not guilty at initial appearances in San Diego federal court, and records showed them in custody Thursday, as a prosecutor noted they can continue living at their La Jolla home while the case proceeds.
  • Authorities estimate the proceeds at about $100 million and say the money funded a lavish lifestyle including a La Jolla Shores home, with prosecutors seeking forfeiture of financial accounts and the property; the charges carry potential decades in prison and multi-million-dollar fines.