Company Cofounded by Paul Pelosi Jr. Charged with Securities Fraud

[Democrat Organized Crime]

SEC: Environmental investment company Natural Blue Resources run
by criminals

The Securities and Exchange Commission (SEC) charged a company
cofounded by Paul Pelosi Jr. with fraud on Wednesday after
learning that two convicted criminals were running the business.

Paul Pelosi Jr., the son of House Minority Leader Nancy Pelosi
(D., Calif.), was the president and chief operating officer of
Natural Blue Resources Inc., an investment company he cofounded
that focuses on "environmentally-friendly" ventures.

The SEC charged four individuals with fraud, including former
New Mexico Gov. Toney Anaya, and suspended trading in the
company’s stock. Pelosi owned over 10 million shares in the
company in 2009.

The SEC said Wednesday the company was "secretly controlled" by
James E. Cohen and Joseph Corazzi, both of whom had previous
fraud convictions. Corazzi violated federal securities laws and
was barred from acting as an officer or director of a public
company. Cohen was previously incarcerated for financial fraud.

Cohen and Corazzi said they were "outside consultants," but
according to the SEC, they actually controlled Natural Blue’s
business decisions "without disclosing their past brushes with
the law to investors." The pair made hundreds of thousands of
dollars off the company.

"Cohen and Corazzi concealed their involvement through a so-
called ‘consulting’ agreement, but their influence over the
issuer spread much further," said Andrew J. Ceresney, director
of the SEC’s Enforcement Division. "Investors in Natural Blue
had a right to know who was running the company behind the
scenes."

The SEC suspended trading in Natural Blue stock. A notice filed
in the Federal Register on Wednesday by Jill M. Peterson,
assistant secretary of the SEC, revealed that the company has
not filed any periodic reports, which are required by law, with
the SEC in four years.

"It appears to the Securities and Exchange Commission that there
is a lack of current and accurate information concerning the
securities of Natural Blue Resources, Inc. because it has not
filed any periodic reports since the period ended September 30,
2010," Peterson said, in the order announcing suspension of
trading.

Cohen, Corazzi, Anaya, and Erik Perry, a former executive at
Natural Blue, were all charged with federal fraud violations.
Anaya, who was Governor of New Mexico from 1983 to 1987, and
Perry "misled investors by failing to disclose that Cohen and
Corazzi were running the company in spite of their criminal or
disciplinary histories," the SEC said.

"Natural Blue and its officers attempted an end-run around the
rules designed to prevent recidivists from getting their hands
on the controls of public companies," said Paul Levenson,
director of the SEC’s Boston Regional Office.

"While Natural Blue was ostensibly led by Anaya and subsequently
Perry, management decisions made by Cohen and Corazzi resulted
in no revenues or viable business operations for the company,"
the SEC said. "Anaya and Perry each deferred to Cohen and
Corazzi in derogation of their responsibilities."

The SEC said Natural Blue made "various material
misrepresentations about the company, its contracts, and its
anticipated revenue in a February 2011 press release as well as
on a website and verbally to investors."

There is some dispute over Paul Pelosi’s current connection to
the company.

The New Mexico Office of the Secretary of State Business Service
Division currently lists Natural Blue as a company "not in good
standing," with Pelosi listed as its president.

Pelosi cofounded the company in 2009. The SEC said Natural
Blue’s mission is to "create, acquire, or otherwise invest in
environmentally-friendly companies, including an initiative to
locate, purify, and sell water recovered from underground
aquifers in New Mexico and other areas with depleting water
resources."

According to Bloomberg Businessweek, Pelosi served as president
and chief operating officer of Natural Blue Resources, Inc.
until January 11, 2010. Joseph Montalto is listed as the current
president.

However, the Mountain View Telegraph cited Pelosi as Natural
Blue’s president last year, and Anaya was still leading the
company as chairman and CEO at this time.

Pelosi and Natural Blue Resources could not be reached for
comment.

Anaya will be barred from participating in any penny stock
company for at least five years, and fined an amount to be
determined later. Perry also settled with the SEC, agreeing to
pay $150,000 fine, and permanently banned from serving as an
officer or director of a public company and from participating
in any offerings of penny stock.

https://freebeacon.com/politics/company-cofounded-by-paul-pelosi-
jr-charged-with-securities-fraud/