Lawsuit of the week: SEC sues to collect on $24 million disgorgement order against West Van’s Gregg Mulholland

The U.S. Securities and Exchange Commission (SEC) is again suing fraudster Gregg Mulholland and two shell companies to collect on a $24 million disgorgement order ...

The U.S. Securities and Exchange Commission (SEC) is again suing fraudster Gregg Mulholland and two shell companies to collect on a $24 million disgorgement order handed down in New York in January.

The SEC filed a notice of civil claim in BC Supreme Court on November 15, naming Mulholland, Vision Crest Consulting Group Ltd. and 2978 High Point Drive Holdings Ltd. as defendants. The American regulator seeks recognition and enforcement of the order in B.C., claiming Mulholland hasn’t appealed the order or paid anything to satisfy it.

Mulholland was arrested in Phoenix, Arizona, in June 2015 for his role in a massive securities fraud and money laundering conspiracy by “fraudulently manipulating  the stocks of numerous U.S. publicly traded companies and then laundering approximately US$300 million in profits through at least five offshore firms,” the claim states.

On January 9, 2017, a New York federal court entered a final judgment against Mulholland in the SEC’s civil case, ordering him to disgorge $24,659,355. The commission claims that any funds collected “will be used as restitution to compensate investors injured by Mulholland’s conduct.” 

The two companies, the SEC says, are shell companies used to hold property in West Vancouver and Whistler. The Whistler property was sold last year, and the proceeds are being held by law firm Fasken Martineau DuMoulin, which represented Mulholland’s wife in earlier proceedings where she unsuccessfully disputed the SEC’s claims that the properties were bought with her husband’s ill-gotten gains.

The commission seeks declarations that both Vision Crest and High Point Holdings “have no separate legal identity from Mulholland,” and that properties and any other assets of the companies are held in trust for the SEC. In addition, it seeks to require Mulholland to pay the disgorgement order amount plus interest under the Foreign Money Claims Act.

Mulholland was sentenced to 12 years in prison in February and is currently being held in Brooklyn’s Metropolitan Detention Center.

Mulholland and the defendant companies had not responded to the SEC’s lawsuit by press time.  

comments powered by Disqus

More from Law & Politics

Byelection for Kelowna-West set for Feb. 14

Liberal who gave up his seat for Christy Clark to run again in byelection

Read Article

Michelle Obama to speak at second Vancouver event

Tickets to second GVBOT event with former U.S. First Lady go on sale Monday to GVBOT members

Read Article

First Nations file civil claims in attempt to stop Site C construction

West Moberly and Prophet River First Nations file two separate claims in B.C. Supreme Court

Read Article

Who's getting sued: January 16, 2018

These corporate claims were filed with the BC Supreme Court registry in Vancouver. Information is derived from notices of civil claim. Civil claims have not ...

Read Article

Lawsuit of the week: Consumer class action filed against Canada’s largest grocers ...

Burnaby resident Kira-Lynne Fantov is suing Loblaw Cos. Ltd. and 10 others in a class action for their alleged role in a conspiracy to fix ...

Read Article

Subscribe to our mailing lists

You may withdraw your consent at any time.

* indicates required


* You can modify your newsletter subscriptions at the bottom of any newsletter you receive.
Business in Vancouver Media Group
303 West 5th Avenue, Vancouver, British Columbia
V5Y 1J6 · Canada