The Anatomy of a
Decades-Long Stock-Laundering Pipeline

Read this first. What follows is not a simple theft. It is a sophisticated securities-fraud and stock-laundering scheme whose moving parts span five professional disciplines at once — securities law, corporate bankruptcy, federal tax and FBAR reporting, offshore private banking, and SEC disclosure mechanics — engineered so that no single regulator ever sees the whole. Following it takes a working grasp of each. The cards below make the machine legible; the full securities-fraud primer explains every concept in plain language.

Five plain-language concepts make this fraud legible — for judges, investigators, and the public. Each is a lever the enterprise pulled in turn.

The entire pipeline on one strip — each box is an entity or a move, each arrow is how the same insider stock travels to the next hop, ending at the terminal pump-and-dump. Hover (or tap) any box for what happened and when; hover the arrows for how the stock moved between them. The scroll-driven diagram further down walks the same chain step by step.

 expand — the full genealogy diagram 

Davi Skin is where the stock was finally sold. It is the terminal entity of the whole pipeline — the public listing the laundered shares were walked toward for years, then dumped into the market. The mechanics are written in the certificate register: on 5 March 2007, certificate 5304 moved 946,085 shares — 16% of the float — into CEDE & Co. / DTC street name in a single deposit; 29 days later, on 3 April 2007, certificates 5309–5312 placed 2,295,388 shares with four Bermuda LOM nominees at exactly 3.97% each. Together the enterprise controlled 4,545,213 shares — 76.69% of the free float and roughly 89% of trading volume, liquidated across 2007–08 for $6,385,033 into Bank of Bermuda and N.T. Butterfield.

The setup, though, was years in the making. It begins where the pipeline begins: Cane issued herself the controlling block of the shell — 2,871,051 shares (48.7%) of Dynamic Associates / Legal Access Technologies in June 2001 — then spent six years concealing that ownership. The block was layered through corporate re-skins (Dynamic → MW Medical → Davi Skin, the reporting CIK travelling intact), masked behind a legal name and gender change (Michael A. Cane → Kyleen E. Cane), and finally split into DTC street name and offshore nominees — while federal filings were signed under a name that was no longer legal and the same ownership was misrepresented to courts and federal authorities. By the time the certificates were placed for sale, the controlling owner had been erased from the visible record. What follows is what was sold, and how it was placed.

1. 25 Nov 2003Court order D308221: Michael Allan → Kyleen Elisabeth — name & gender change 
2. May 2004Divorce / property transfer to Susan Eiselman — still under Cane's control
3. 10 May 2004Annual meeting approves the 500-for-1 reverse split
4. 24 Jun 2004MW Medical renamed Davi Skin (DAVN); SIC pivots to 2844 (cosmetics)
5. 20 Jul 2004SC 14F1 change-of-control · Wallace convertible note $570,775.30
6. 15 Sep 2004S-8 + opinion of counsel (McDonald · Carano · Wilson)
7. 2004–200736 sequential CEDE & Co. certs (Nos. 2029–5323) → 2,249,825 sh into DTC
8. 23 May 200510-QSB Reg S — units sold to four foreign investors
9. 2005–2006SEC staff comment letters challenge the Reg S issuances
10. 5 Mar 2007Cert 5304 deposits 946,085 shares — 16% of float in one deposit
11. 3 Apr 2007Certs 5309–5312 → four LOM Bermuda nominees · 2,295,388 sh
12. Jan–Nov 2008DAVN trading window: 11 volume dislocations, 1 confirmed control event
13. 27 Aug 2012Final EDGAR filing · registration REVOKED

The certificate register records the operation in two halves. From 2004 through 2007, thirty-six sequential deposits (certificates 2029–5323) walked 2,249,825 shares into CEDE & Co. / DTC street name — the block quietly staged for sale. The placement then accelerated in the weeks before the offshore transfer: on 5 March 2007, certificate 5304 moved 946,085 shares — sixteen percent of the float — into DTC in a single deposit (→ shareholder register, CEDE & Co., p. 3); twenty-nine days later, on 3 April 2007, certificates 5309–5312 placed 2,295,388 shares with four LOM Bermuda nominees — Arch (5309), Hepburn (5310), Chloe (5311), and Sunshine (5312) — at exactly 3.97% each, a hair under the five-percent line that would have forced a Schedule 13D disclosure of identity, source of funds, and purpose. None of it was disclosed.

The same window is where the frame shows. Behind the Hepburn Holdings block, Wallace — claiming she had breast cancer — pressed the relator to serve as trustee for her daughter, drawing him into the paperwork for the Chloe / Hepburn offshore nominee. She emailed him for his Social Security number “for the form 3 filing … for your davi shares,” and, in the 2008 sale window, used a consulting-agreement pretext to harvest Kenn Gordon’s home address and Social Security number “to issue shares from transfer agent” — manufacturing a paper trail to implicate others in the offshore structure, not placing a genuine block. The record fixes the two real placements and their recipients; tying any single 2008 trading session to a specific block would take trade-level DTC withdrawal data the corpus does not hold. Every placement, filing, and email is laid out by date against the 2008 price and volume in the day-by-day chart.

score(e) = Σh∈H wh · 𝟙[ h fires on e ]      wh ∈ {2, 3}
flag(e)  = 1   ⟺   nsig(e) ≥ 2   ∧   score(e) ≥ τ   (τ = 3)

Now start at the beginning. You've seen the terminal dump and how the certificates were placed; the rest of this report goes back to the start and walks the chain that produced it, one hop at a time. Follow the stock. The scheme begins by concealing who controls a private company — Tele-Lawyer, where the Cane family held the equity outside any SEC scrutiny. When that private stock is taken public, control is split across the family in a Family Bloc — five same-day SC 13G filings (18 Jun 2001). Each holder was individually over 5% (Cane 48.7%, Shirley Cane ~5.35%, the Mekelburgs ~31.65%) and disclosed that stake — but the filings concealed that the five were one coordinated group under Cane, a §13(d)(3) group that together held 85.7% and was required to file as a bloc. From there the same shares are walked through a chain of shells — Dynamic, MW Medical, and finally Davi Skin, the terminal entity: the public listing where the laundered stock is pumped and dumped and the proceeds routed offshore. Read the diagram below as that journey, hop by hop.

Each transformation moved the same insider stock one step closer to a tradeable, liquidatable asset — while the controlling identity was concealed at every hop. The reporting CIK travels intact from MW Medical through Davi Skin (CIK 1059577), so a single hidden shareholder register survives four corporate re-skins. The public listing itself was acquired through a blank-check shell carrying CIK 878146.

Expand any entity in the chain:

 Dynamic / LATI  →  MW Medical  →  Davi Skin 

On a single 24-hour window, five "independent" reporting persons filed for the same issuer — each below a disclosure line, none disclosing a group. The fields that tie them to one office are bolded.

* All five statements report the same 18 Jun 2001 event, were transmitted by a single EDGAR filer (0001075793, Cane Clark), and name the Cane office as the issuer — the through-line that ties the “independent” holders to one desk.

 The bloc's "Mekelburg" holders are Cane's siblings: Brian and Nancy Mekelburg appear in the family record as Brian M. Cane and Nancy M. Cane — Mekelburg is the siblings' married surname — and the Mekelburg Family Trust (executor Stuart Cane) holds more. The parents Herb & Shirley Cane filed the same day, three days after Cane herself.

Every entity from Dynamic to Davi Skin, and the SDI / Galaxy Gaming permutations, sat under the control of Kyleen Cane — the architect and kingpin. As the securities attorney, Cane alone held the legal authority and the expertise to build the scheme: she was counsel, beneficial owner, director, and EDGAR filer, and she dictated each corporate step. Jan Wallace was her agent and instrument — installed as CEO and the manufactured sole secured creditor to front the entities and execute the bankruptcies, but without the sophistication or the authority that only the lawyer commanded. They acted together at every hop — Cane directing, Wallace executing — and at times secretly: the outside names brought in for cover — Parrish Medley and Carlo Mondavi at Davi Skin, shell purchasers such as Beardmore ($250K for MW Asia) — were marks, unaware they were fronting or buying a vehicle already hollowed out and pre-positioned for liquidation. The same playbook that perfected the takeover then obscured the evidence: a backdated identity to sever the trail, CEDE & Co. to anonymize ownership, a bankruptcy to extinguish the shareholders who might ask questions, and a filing-agent switch as the dump began. The same machinery recurs in the related schemes, in chronological sequence — the Wallace identity infrastructure (from 1981), the Thomas & Wong attorney-escrow loan fraud (2002), United States v. DiScala (2012–2018), and the “Voters for Hillary” SuperPAC (2014). Every one of these threads is pleaded together in the filed qui tam complaint — United States ex rel. Phillips v. Cane et al., No. 1:26-CV-21948-LFL (S.D. Fla.).

 Review the enterprise-scale RICO complaint against the enterprise 

The static companion to the animated pipeline above — the whole enterprise on one page. The scheme resolves into three CIK-coded entity chains (CIK 878146 · CIK 1059577 · CIK 13156), each a corporate lineage that carried the same insider stock forward under a new name. Click either panel to open the source figure⁶⁷, or open the animated pipeline figure  in its own tab.

 Figure 1 — three CIK-coded chains · open full PDF  Figure 2 — detailed scheme flow · open full PDF

Read the diagram as genealogy, not a org-chart. A company on EDGAR is identified by a permanent CIK — a number that survives every rename, reverse split, and reverse merger. The scheme exploits that permanence: Chain 1 (CIK 878146) runs Tele-Lawyer → Dynamic Associates → Legal Access Technologies (LATI) — a private Cane-family company reverse-merged into a blank-check shell so the family's stock inherits a public listing. Chain 2 (CIK 1059577) runs MW Medical → Davi Skin — one reporting shell, spun from Dynamic by a 1:1 distribution that mirrors the shareholder register, then re-skinned into the terminal pump-and-dump vehicle. Chain 3 (CIK 13156) runs Secured Diversified Investment → Galaxy Gaming — the same operators recycling a second shell. Because the CIK travels intact, a single hidden shareholder register survives four corporate re-skins: the public-facing name changes, but the concentrated insider ownership underneath does not.

Follow the certificates, not the names. The genealogy exists to move one block of insider stock from a private company nobody could scrutinize into anonymous, free-trading, liquidatable shares — while erasing where it came from at every hop. (1) Origin: Tele-Lawyer issues stock to Cane and family entirely outside SEC scrutiny — the seed position. (2) Public listing: the reverse merger into Dynamic and a 153:1 reverse split wipe 99.35% of the outside float, landing 91.6% with the Tele-Lawyer holders. (3) Group concealment: five same-day Schedule 13G filings (18 Jun 2001) split coordinated family control — 85.7% — into individually-disclosed stakes that were never aggregated as the §13(d)(3) group they were.⁵ (4) Reconcentration: the MW Medical Chapter 11 converts a Wallace-held note to 74,000,000 shares (74.1%) and extinguishes the outside equity that might ask questions.¹² (5) Offshore placement: at Davi Skin a concealed $200,000 note is converted to 2,295,388 shares (15.9%) in four equal blocks to the LOM Bermuda nominees (certs 5309–5312), and 36 sequential CEDE & Co. certificate deposits move 2,249,825 shares into anonymous street name for liquidation offshore.³⁵ Each step severs the certificate from its prior-entity provenance — the very thing the diagram reassembles.

The re-skinning is not cosmetic — it is the laundering mechanism itself. Every cycle does three things at once: it resets the float (a reverse split erases the outside holders on paper), it launders provenance (a new name and ticker detach today's shares from the fraud that created them), and — through an engineered bankruptcy — it extinguishes the outside shareholders who could testify to what happened. What emerges each time looks like a clean company with a new story, while the concentrated insider block rides the permanent CIK forward, one step closer to tradeable offshore cash. That is why the genealogy is the case: prove the lineage and the "unrelated" Bermuda nominees, the "clean" post-bankruptcy shell, and the "new" public company all resolve back to the same private Cane-family stock. The full narrative is pleaded in the qui tam complaint; the entity roster and CIK cross-reference sit on the EDGAR entities page .

One person — admitted to the California Bar in 1979 as Michael A. Cane (No. 87106) — has used three legal names and, in Nevada, a separate professional name (Bar No. 5900). The change to "Kyleen E. Cane" was reported to the SEC as effective 28 Jun 2001, sixteen days after the reverse merger; it actually occurred by court order on 25 Nov 2003²³ and was recorded in Nov 2004.²⁴ From 2019 to 2023 the "Cane" and "Castro" names ran concurrently from a single Las Vegas office (3273 E Warm Springs Rd), selected by forum — Castro to the Secretary of State, Cane to the courts. The backdated date was wired to EDGAR twice, each transmission a discrete wire-fraud act under 18 U.S.C. §1343.²¹

 expand · three names, one person — the full record 

One document carries the through-line: the same career history — B.A. U.C. Irvine 1975, USC J.D. 1978 (Order of the Coif), the Tele-Lawyer / Legal Access Technologies companies, the 2024 U.C. Irvine Ph.D. — repeated verbatim from "Michael A. Cane" to "Kyleen E. Cane" to "Kyleen Elisabeth Castro." Page through all seven; the descriptions map each page.

The 85.7% family bloc was never filed as a group. Splitting one control position across related holders kept every individual filing under an aggregation trigger, so no Schedule 13D "group" was ever declared and the controlling person stayed invisible across the whole chain.

Cane used two Nevada civil actions as cover and intimidation, filing and swearing as "Kyleen E. Cane" in court while simultaneously operating as "K E Castro" before the Secretary of State — a deliberate split that keeps the two paper trails from being joined.

 The concealment reaches the household. Susan Eiselman — Cane's wife — has continued to live with Cane through the 2003 gender change and after; the 2004 transfer of the marital home, papered as a divorce settlement, functioned as a way to split and shield assets rather than an actual separation.

concurrent use · one office · 3273 e warm springs rd, las vegas nv 89120

Every position was tuned to sit one notch under a disclosure line: 48.7% under the 50% control threshold; family kept un-aggregated; offshore nominees each under the 5% Schedule 13D trigger. The gaps are too precise to be accidental.

On 3 Apr 2007, certificates 5309–5312 issued exactly 573,847 shares to four entities at one address — The LOM Building, 27 Reid Street, Hamilton. Each lands at 3.97%: just under the 5% reporting trigger. Identical share counts across four "unrelated" foreign entities do not occur in natural markets.

36 sequential CEDE & Co. certificates deposited 2,249,825 shares into DTC over three years. Deposits accelerate into the 2007 promotional window — 70.6% of all volume — synchronized to the offshore nominee issuance.

The shells were not empty husks chosen at random — each iteration wrapped itself around a stream of federal funds to manufacture legitimacy. Medicare billings gave the reporting shell a commercial story; later vehicles in the same orbit drew pandemic relief. Federal money was the veneer that made a laundering pipeline look like a business.

 expand · Genesis / Medicare — the $49.3M False Claims engine, the Hunter & Spertell taint, and the offshore note pipe 

Davi Skin shares reached the market through two distinct channels. Channel 1 deposited insider stock into CEDE & Co. / DTC street name for sale. Channel 2 converted Wallace's Davi Skin promissory note — the Lahka $200k nominee conversion³¹ into 2,295,388 shares, issued as certs 5309–5312 and split 4 × 573,847 across the LOM entities. Proceeds settled into the LOM entities' own offshore bank accounts — not a neutral custodian; no FBAR was ever filed and no U.S. capital gain reported. The dump controlled roughly 89% of daily trading volume during the manipulation window.

two channels · one terminus

offshore accounts held by the LOM nominee entities

Proceeds from 2,295,388 shares liquidated through four Bermuda nominees flowed to Bank of Bermuda and N.T. Butterfield. Six mechanisms kept $6.39M off every U.S. return.

In a sworn deposition during the Galaxy Gaming bankruptcy (CIK 13156), Jan Wallace was examined about offshore accounts.

The points below are allegations drawn from the documentary record — they have not been adjudicated. Read that way, the filings still show machine-detectable patterns across EDGAR that are consistent with a coordinated scheme and that anyone with automated detection could surface.

1. Institutional fragmentation. SEC, IRS, FinCEN, and state regulators each see fragments; none has full visibility.
2. Filing volume. Millions of filings a year; without pattern detection, anomalies are invisible.
3. Legal sophistication. An attorney designed structures to exploit the seams between securities, bankruptcy, and tax law.
4. Offshore routing. Bermuda nominees and accounts provide legal obscurity even when domestic activity is flagged.
5. Network connections. Associations alleged in offshore-leak datasets suggest infrastructure beyond a single fraud. (allegation/analysis)

The documentary record implicates the following — every entry maps to conduct shown above.

What appears in SEC filings as routine corporate activity was an engineered pipeline: convert private stock into tradeable shares, concentrate ownership while reporting the opposite, extinguish outside holders through manufactured bankruptcy, and liquidate through calibrated offshore nominees — all below every disclosure threshold.

Davi Skin was not isolated. The same operators ran the same plays — attorney-trust pass-throughs, manufactured creditor positions, offshore nominees, and a legal veneer over operational control — across the other documented arenas, in chronological sequence:

The Wallace identity infrastructure (from 1981) — four aliases and three Social Security numbers (two stolen from the deceased, one fabricated), each assigned a fraud function, with bankruptcy testimony of “no offshore accounts” contradicted by her own prior sworn testimony about Hepburn Holdings (Bermuda): the concealment layer beneath the whole enterprise.⁵³

Genesis Health Management (1994–2001) — the federal-money engine that preceded the share-trafficking: Dynamic Associates billed Medicare directly through the geropsychiatric PPS exemption, generating ~$49.3M in management fees while a convicted Medicaid felon and an OIG-excluded doctor sat inside the controlled group and a Genesis-employee qui tam was disclosed once and then suppressed — with $3.28M of government money routed to offshore Reg S noteholders.⁵⁶

MW Medical (1998–2004) — the shell Dynamic Associates spun off to its own shareholders in 1998 and Wallace ran, weaponized through a manufactured Chapter 11: a self-dealt secured note placed Wallace first in line, the §1145 plan made the reorganized shares free-trading, and the vehicle re-emerged as Davi Skin.⁵⁷

Dynamic Associates / LATI (2001) — the blank-check shell (SIC 6770) reverse-merged into Legal Access Technologies: roughly $8.6M of noteholder debt converted to stock and a 153:1 reverse split handed the Cane family bloc ~91.6% of the float while the offshore pre-merger holders were diluted to near zero.⁵⁸

Thomas & Wong (2002) — off the $250K sale of the MW Asia shell to Beardmore, Wallace induced a contractor to wire $1.5M into a Cane O'Neill attorney trust account for a bridge loan; three unauthorized diversions ran before any documents were signed and the gold-doré collateral never existed, yielding a $1.3M non-dischargeable judgment.⁵³

SDI / Galaxy Gaming (2005–2008) — the same takeover-by-bankruptcy on Secured Diversified Investment: Cane Clark appeared as a petitioning creditor against its own client, an involuntary Chapter 11 and a 20:1 reverse split concentrated control, and the clean public shell was delivered to Galaxy Gaming holders.⁵⁴

United States v. DiScala (2012–2018) — the only federal indictment naming Cane directly (E.D.N.Y., 2014): she held millions of free-trading shares in attorney escrow and released them on trading instructions across four shells generating $300M in artificial market cap. A 2014 wiretap caught her on price control; she was acquitted at the 2018 trial.⁵¹

The “Voters for Hillary” SuperPAC (2014) — formed 17 days before her indictment was unsealed, with Cane lending it $10,700. The PAC funneled $73,000 to CrossClick Media (XCLK) — a Cane Clark client penny stock — while PAC insiders controlled CrossClick: the same circular share-control structure in a campaign-finance wrapper.⁵²