After a weeklong trial, Andrew Coldicutt, a securities attorney based in San Diego, was found guilty by a federal jury on 17 counts of securities fraud, false securities registration statements, and wire fraud. The charges stem from two pump-and-dump market-manipulation schemes.
The jury reached its verdict after less than four hours of deliberation. Coldicutt was accused of using his expertise to assist clients—who were actually undercover FBI agents—in creating companies, taking them public, disseminating false information about these companies, manipulating stock prices for profit, and concealing their involvement.
In the first scheme from 2017 to 2019, Coldicutt devised a plan for a fictitious backyard fruit harvesting company. He filed fraudulent securities registration statements with the U.S. Securities and Exchange Commission for an initial public offering of the company's stock. These documents contained misleading information about the company and its ownership.
In another scheme in 2019, one of Coldicutt's corporate clients required quick capital. Instead of legal fundraising methods, Coldicutt proposed another pump-and-dump scheme to undercover agents. He provided a false attorney opinion letter to facilitate stock sales.
During the trial, evidence included recordings that linked Coldicutt to the crimes. He was recorded accepting $2,500 as an advance for completing the scheme and coordinating plans through encrypted messages with a cooperating source.
Testimony revealed that the anticipated profit from the first scheme was around $4.85 million, with Coldicutt's share estimated at $240,000. However, since he was working with undercover agents gathering evidence against him, no investors suffered losses.
Acting U.S. Attorney Andrew R. Haden stated: "Securities attorneys and other professionals in the securities industry hold a critical position of trust and responsibility... Thanks to the diligent work of FBI investigators and our prosecution team... This outcome reflects the extraordinary efforts of all involved."
FBI San Diego Special Agent in Charge Stacey Moy commented: "Andrew Coldicutt engaged in a deliberate, unlawful and years long securities fraud scheme... Attorneys are held to a higher standard of conduct...the FBI will hold them accountable."
Coldicutt is scheduled for sentencing on July 11, 2025, before U.S. District Judge Jinsook Ohta. The Securities and Exchange Commission has also initiated civil action against him.