A Southern California guy whose parents were pillars of La Jolla society has just been told there is no way he’s getting bail. Harold (B.J.) Gallison Jr. was arrested on July 14th for the second time as the ringleader of multiple microcap frauds. On Friday the Dept of Justice showed a San Diego federal judge how B.J. Gallison has moved over $400k into beneficiary accounts in the last ten months while he likely knew he was once again under federal investigation. Meanwhile Wendy Silver Gallison, his wife, and their two small children are holed up in small house in a remote desert section of San Diego called Valley Center facing frozen bank accounts.
The career criminal history of B.J. Gallison for his role in everything from bucket shop broker dealer operations (La Jolla Captial) to his recent escapades of helping owners of microcap companies hide their stock and money launder their cash while they executed pump and dump schemes (Moneyline Brokers) has been chronicled by a seasoned San Diego investigative reporter and editor Don Bauder. (He is a colorful writer with great inside detail so I totally recommending reading his reports.)
This is a case of complete government fail to stop a man with no apparent respect for earning a dollar legally or respecting the laws of free markets. In the current case, filed June 24th and unsealed July 14th, the SEC sued 15 other people with him and the DOJ criminally charged 8 of Gallison’s cohorts.
There are likely others that are working as confidential informants or co-conspirators that the government hasn’t named yet in this case and I’d love to hear from anyone who knows these people. Starting with anyone from San Diego who has interacted with Wendy Silver Gallison. She was named as the director of two Nevada incorporated companies the DOJ said recently received monies from B.J. Gallison’s Moneyline operations.
I spoke with Wendy briefly today (home: 760-751-0141), who lives at 11966 Betsworth Rd Valley Center, Ca and she confirmed Faith Services Inc was a company related to her that she served as director. She got all caggy when I tried to get her to explain why B.J.’s off-shore broker dealer entities (Stix Pix Inc, Jurojin), named in the DOJ complaint, were making regular deposits into the Faith Services Comerica Bank account to the tune of $257,500 from September 2014 to March 2015. The only really answer I got out of Wendy was “I’d have to talk to the lawyer about that”. But she wouldn’t tell me who ‘the lawyer’ is. When I eventually asked what she thought of her husband’s arrest she hung up.
Now Wendy likely knew this payday with the government was coming. She tried to erase her Facebook page this month but a cached view still shows Wendy is a church going lover and likes Valley Central Community Church. Religious organizations are often an easy tax shelter for finance criminals but we still have no clear answer on how many other shell corporations B.J. and Wendy could have stuffed their ill-gotten gains in. I find it interesting that Wendy and the kids are living in a home worth less than the $421,400k the DOJ says her husband tried to hide in the last ten months. If you know Wendy from church in Valley Center, feel free to reach out to me at email@example.com.
Another unnamed long time person in the scheme could be B.J.’s lawyer Irving Einhorn who wrote me this week saying he’s not representing B.J. Gallison. Einhorn was named in a 2010 civil case by clients of Gallison’s at GISBeX (an online trading platform many think he started to run during his first prison sentence in 2005). The clients accused Einhorn, in court documents, of strong arming them to stop their litigation against GISBeX when the online broker wouldn’t return the money or stock in their account. Einhorn allegedly told the clients he’d report them to the SEC. The clients, who filed suit in South Florida, had been trading in one of the stocks listed in the most recent DOJ case $BYRN. The company was a total pump and dump and these GISBeX clients (who honestly could be nominee accounts) said they even found an email chain between Einhorn and Gallison about $BRYN being a pump and dump.
Gallison has now hired a former SEC enforcement lawyer, Steven Goldsobel, who hasn’t return my calls or emails for comment. Goldsobel has represented other microcap fraudsters. He was at Gallison’s detention hearing and wasn’t able to argue his client out of jail.
UPDATE JULY 22
I have more detailed report on the players in this fraud and the microcap stocks involved at www.growthcapitalist.com. If you know more about Wendy, B.J. and their old lawyer friend Irving Eihorn please reach out to me at firstname.lastname@example.org
DOJ Document presented at Gallison’s Bail hearing