Stock Consultant Pleads Guilty to Conspiracy

SAN DIEGO (CN) – A “consultant” in Rancho Santa Fe pleaded guilty Tuesday to securities fraud conspiracy, and the SEC suspended trading in iTrackr stock, federal prosecutors and the SEC said.
     An FBI agent posing as a businessman told David Bahr, who was self-employed in the nation’s wealthiest community, that he, the agent, could talk stockbrokers into putting their clients’ money into iTrackr stock for a 30 percent kickback, the U.S. Attorney’s Office said in a statement announcing Bahr’s guilty plea.
     “The undercover officer told Bahr that the kickback would not be disclosed to the brokers’ clients, and that he could ensure that the shares would be held for approximately one year, thus keeping the shares off the market and avoiding any sales that would decrease the price,” the U.S. attorney said.
     “Bahr agreed to the plan, and agreed to pay the kickback. Bahr told the undercover officer that in order to reach his desired share price, he wanted the brokers to buy 10 million shares of iTrackr at an average price of 25 cents per share, for a total investment of $2.5 million. Bahr agreed to pay a total kickback of $750,000.
     “Bahr and the undercover officer agreed to do a test run. On various days in December 2012, the undercover officer, using FBI funds, made an initial purchase of iTrackr stock, and Bahr purchased a total of 135,000 shares of iTrackr stock. Bahr was satisfied with the purchases, and wired a $3,000 kickback to the undercover officer’s bank account. Days later, federal agents searched his Rancho Santa Fe home and seized documents and electronic evidence,” prosecutors said in the statement.
     Bahr, 54, faces up to 25 years in prison and a $250,000 fine at his Sept. 3 sentencing. He is free on bond.
     The SEC filed parallel, civil charges. It describes iTrackr Systems as based in Boca Raton, Fla.
     “The company purported to develop software capable of tracking electronics inventory at local stores,” the SEC said in its complaint. “iTrackr’s stock began trading publicly on April 14, 2011, and at all relevant times, it was quoted on the
     OTC Link under the symbol ‘IRYS.’ Its common stock is registered with the SEC pursuant to Section 12(g) of the Exchange Act. At all relevant times, iTrackr qualified as a penny stock as defined by Rule 3a51-1 of the Exchange Act, and did not meet any exceptions to that rule.”
     The SEC complaint adds: “On various dates prior to November 27, 2012, Bahr coordinated the purchase of iTrackr shares by himself and others in order to keep its stock price from falling. Bahr wanted the stock price to remain high enough so that he could effectively promote the stock at a later date and artificially inflate its price even higher. Bahr also arranged for the dissemination of promotional material that overstated the likelihood of iTrackr’s success and future profits.”
     On Nov. 27, Bahr spoke to the businessman who turned out to be an FBI agent.
     The SEC on Tuesday also suspended trading in iTrackr shares for 2 weeks.
     Rancho Santa Fe is an unincorporated, gated community in the forested hills of northern San Diego County. Bill Gates, the Sultan of Brunei and other luminaries have or have had homes in the swank, guarded enclave. The estimated median household income for its 3,425 residents was $189,065 in 2009 – 321 percent of the state average of $58,931, according to city-data.com.
     The mean price value of all housing units there was $1,140,000, according to city-data.
     City-data reported the median gross rent that year as $2,001, or $166.75 a month – indicating that no one rents in Rancho Santa Fe.

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