Inside-Trading CEO Must Pay $8.9 Million

LAS VEGAS (CN) — A federal judge ordered the former CEO of a Montreal tech firm to pay $8.9 million for RICO violations in an inside-trading scheme.

The former CEO of a Montreal tech firm must pay $8,898,184.80 for RICO violations.

The award against Dwight Romanica constitutes treble damages for his role in the scheme he ran while CEO of ISee3D, U.S. District Judge Richard Boulware II wrote in his Aug. 11 order for default judgment.

A different judge in the same court ordered ISee3D to pay a similar amount in July 2015, to lead plaintiff Panliant Financial, of British Columbia.

Romanica became CEO of ISee3D's Montreal operation in 2008, after the company accepted funding from Panliant. Co-plaintiffs Alan G. Smith and A.G. Solutions, also of British Columbia, were shareholders in Panliant, as was Romanica, according to the lawsuit.

Panliant claimed that Romanica forced Smith out of his CEO position, and then performed the services for which Panliant had been contracted.

Smith said in an affidavit that Romanica and others at ISee3D fraudulently accused him of inside trading and falsifying checks, and made it look like the accusations came from an auditor, in an effort to wipe out debt owed to A.G. Solutions, fire Smith, and force him to surrender his shares in Panliant.

U.S. District Judge James Mahan in July 2015 ordered Isee3D to pay $2,966,062 in actual damages and $5,932,123 in punitive damages to Panliant Financial.

Judge Boulware ordered Romanica to pay the penalty on Aug. 11 and gave plaintiffs 14 days to submit billings for attorney's fees and legal costs.

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