Businessmen Plead Guilty in Securities Fraud Schemes

Zoltan Nagy, a Canadian businessman, and Glenn Laken, an Illinois trader, have pleaded guilty to conspiring to commit securities fraud in connection with international pump-and-dump schemes that led to over $1 million in losses. The U.S. Attorney's Office announced the guilty pleas, highlighting the complex nature of the schemes and their impact on investors.

The Lotus Scheme

Nagy was the sole officer and director of Lotus Bio-Technology Development Corp. , a penny stock company trading under the ticker LBTD. By August 2017, Nagy and his co-conspirators, including Phillip Sewell, Richard Tang, and Davies Wong, controlled most of the LBTD shares available for public trading.

On August 16, 2017, a U. S. -based online brokerage account was hacked to purchase 200,000 LBTD shares.

Concurrently, Wong and others sold approximately 261,000 LBTD shares at inflated prices.

On September 19, 2017, the scheme escalated when 24 customer accounts at multiple U. S. -based online brokerage firms were hacked to purchase millions of LBTD shares.

During this time, Wong and other co-conspirators sold about 7. 75 million LBTD shares, generating nearly $1. 1 million in proceeds.

These proceeds were later divided among Nagy, Wong, Tang, Mohamed, Sewell, and others.

The Good Gaming Scheme

Laken, who was the CEO and chairman of a company owning 61% of Good Gaming, Inc. , trading under the ticker GMER, was involved in a similar scheme. Between January 12 and January 18, 2018, Tang coordinated with Laken to transfer approximately 2.

9 million GMER shares to co-conspirator accounts. On January 22, 2018, several U. S.

-based online brokerage accounts were hacked to purchase over one million GMER shares. At the same time, co-conspirators sold more than 700,000 GMER shares obtained from Laken, resulting in nearly $170,000 in proceeds.

Legal Proceedings and Sentencing

On October 20, 2026, Zoltan Nagy, 60, pleaded guilty to conspiracy to commit securities fraud. His sentencing is scheduled for January 20, 2027. Glenn Laken, 72, pleaded guilty on September 25, 2026, with his sentencing set for January 13, 2027. Both face up to five years in prison and may be ordered to pay restitution and fines.

Co-conspirators Sewell, Tang, and Wong have also pleaded guilty to related charges. Sewell's sentencing is on January 22, 2027, Tang's on January 21, 2027, and Wong's on January 21, 2027. Tang faces up to twenty years' imprisonment, while Sewell and Wong face up to five years.

The case, investigated by the FBI with assistance from the SEC, highlights the coordinated efforts to combat securities fraud. Rahim Mohamed, another co-conspirator, remains at large, and authorities urge anyone with information on his whereabouts to contact law enforcement.