Piercing the Veil (PART II): Who is Jonathan Daws?

Jonathan Daws Case Study
The Investigator | FEBRUARY 20, 2015

Who is Jonathan Daws?
Jonathan Gregory Daws worked as a Portfolio Manager at Gryphon Partners, a hedge fund located in Dallas, Texas, from December 1999 through May 2002. From about Mar 2000 to May 2002, Jonathan Daws, along with Anthony (“Amr”) Elgindy, Derrick Cleveland, Jeffrey Royer, Troy Peters and Lynn Wingate together with others conspired to “engage in acts, practices and a course of business which would and did operate as a fraud and deceit upon members of the investing public, in connection with the purchases and sales of securities of the targeted companies in violation of Title 15, United States Code, section 78j, subsection (b) and 78 subsection ff.”
As part of the conspiracy, Daws and others solicited and obtained confidential, non-public information concerning targeted companies, which they then used to make decisions whether to purchase and sell the stocks of the targeted companies. They then “ devised and oversaw a fraudulent scheme to deflate artificially the price of various companies’ stock that they sold short so that they could profit by buying it back later at a lower price.”
Daws and others were members of a website called AnthonyPacific.com, owned by Elgindy. Through an FBI agent, Daws and others associated with AnthonyPacific.com became aware of government investigations into certain publicly traded companies. This information had been misappropriated from government agencies and was both nonpublic and material. Daws and the others posted some of the confidential law-enforcement information on the AnothonyPacific.com website so that they, and other customers of the website, could trade based on the information.
On 7 Apr 2005, Daws plead guilty, under a plea agreement in the U.S. District Court for the Eastern District of New York, to his role in the conspiracy. Daws originally faced 18 to 24 months in prison and up to a $250,000 fine, plus restitution. However, on 16 Aug 2006, Daws was given three years’ probation, a $50,000 fine, and 500 hours of community service. Daws avoided prison time due to what the court called, “compelling family circumstances,” (not further identified).
For their part in the scheme, Elgindy and Royer were found guilty of racketeering conspiracy and securities fraud in Jan 2005. Elgindy was sentenced to 11 years and three months in prison and a $1.6 million fine. Royer’s sentence is unknown.
In 2006, the SEC sued Gryphon Partners, Daws’s former employer, for providing fraudulent “death spiral” PIPEs financing to 35 companies. Gryphon allegedly provided its PIPEs financing knowing that it would cause stock prices to fall. The hedge fund then hammered the companies with naked short sales in Canada, sending their stocks into “death spirals.” Most of the 35 companies were destroyed

Where is Jonathan Daws Now?
Jonathan Gregory Daws probably resides in the Portland, Oregon area, though it is possible he still remains connected to Tennessee where he is from originally. He indicates he is an Independent Investment Management Professional. He is also listed as an Analyst at D2, Inc., a Portland, Oregon area company in the Financial Services sector. D2 Inc. is registered at 22165 NE Fryer Hill Rd., Dundee, OR 97115, approximately 30 miles southwest of Portland, OR. Jonathan’s wife, Lisa Hornsby Daws is listed as the Registered Agent and President of the company, and Jonathan is listed as the Secretary.
Jonathan Daws maintains a Twitter account (@Jonathan_Daws). On this account he has Tweeted 69 times. His Tweets have been largely related to financial issues, to include investing and stock market activities. On 19 Feb 2014, Daws Tweeted about a company called Plandai Biotechology, Inc. (PLPL), a biotechnology company focused on extracts from live plant material. They are headquartered in Seattle, Washington, USA, but have offices in London, England and a significant amount of assets in South Africa. Daws’s Tweets about the company indicate the company may have some connections to the cannabis industry.

Through his Twitter account, Daws is following 159 entities and is being followed by 40. Most of the entities he follows and those who follow him are focused on investments, particularly “pump and dump” and “short selling” entities. Of particular note.

Daws is followed by the following entities:
•Moez Kassam (@MunchingMoez)
•AnthonyPacific2_0 (@AnthonyPacific)
•Anthony Elgindy (@AnthonyElgindy)

Daws is following the following entities:
•AnthonyPacific2_0 (@AnthonyPacific)
•LaughinPaulRyan (@LaughinPaulRyan)
•puri jr (@puri_jr)
•Adam Spears (@spearsy234)
•Moez Kassam (@MunchingMoez)

As of 7 Sep 2014, Daws remains connected with Bruce Winson. On 7 Sep 2014, Jonathan’s wife, Lisa Hornsby Daws posted a picture of Jonathan and Lisa on a recent trip to Mexico. Bruce Winson commented on the photo, and Bruce and Lisa exchanged several comments back and forth about the photo. All of the comments were in Spanish. In the conversation, Lisa asks, “Does anyone wanted to bail us out?” Bruce Winson asks, “where are you?” Lisa responds that they are at, “Casa Daws,” and that they, “need 500K bail out,” “Canadian dollars preferred.” Bruce Winson responds, “very funny, you don’t want pesos?” Lisa responds, “hunting here is very expensive.” Lisa then refers to the apparent policeman in the photo with her and Jonathan saying, “this is my new friend…I build army to protect Jonathan.” Lisa then says, “we love your heart and the warmth of the people of Mexico. We were lucky gusts thr Palacio del Sol.” Bruce responds, “Mexico is terrific.” Lisa ends the dialog with, “I will carry in my heart. You should call your friend.”

Timeline of Key Connections
1999-2002
Daws worked for Gryphon Partners as a portfolio manager in Dallas, Texas

Mar 2000 – May 2002
Daws and others involved in stock fraud conspiracy; co-conspirators included Anthony (Amr/Tony) Elgindy (AnthonyPacific.com), Jeffrey Royer, Derrick Cleveland, Troy Peters and Lynn Wingate

Jan 2005
Anthony Elgindy and Jeffrey Royer found guilty of racketeering conspiracy and securities fraud; Elgindy sentenced to 11 years 3 Months in prison and $1.6M fine

April 2005
Daws plead guilty to conspiracy and other charges

2006
SEC sued Edwin Buchanan Lyon IV, Gryphon Partners et.al. for illegal trading schemes including insider trading by using material nonpublic information and selling short securities of certain PIPE issuers.

16 August 2006
Daws sentenced to three years’ probation, $50,000 fine and 500 hours of community service

2007
Daws worked as a Systems Analyst for Frigate Ventures in Dallas, Texas (while on probation). Bruce Winson and Jonathan Daws contributed to Ron Paul political campaign from a Dallas

September 2008
Daws lived in Portland Oregon area (Dundee, OR); one LinkedIn page indicates he is an analyst at D2 Inc (Financial Services) and a second LinkedIn page indicates he is an independent investment management professional

August 2010
Daws created Twitter account (@Jonathan_Daws)
Jonathan Daws follows several actors connected with Anson Funds, Anthony Elgindy and LaughinPaulRyan; several of these actors follow Daws

Jonathan Daws follows:
@Puri_Jr
@LaughinPaulRyan
@Spearsy234
@MunchingMoez
@AnthonyPacific

Jonathan Daws followers:
@AnthonyElgindy
@MunchinMoez
@AnthonyPacific

7 September 2014
Bruce Winson and Lisa Hornsby Daws (Jonathan’s wife) exchanged commentary on a photo of Lisa, Jonathan and a Mexican Police Officer which was posted on Lisa’s FaceBook page

Bruce’s father, Eric Owen Winson, was born in 1932 in Bulawayo, Southern Rhodesia (now Zimbabwe), South Africa. Since 1976, he and his family were resident aliens before becoming naturalized citizens. He petitioned for US Naturalization while living in Nashville, TN in 1986. He worked as a commercial pilot, an entrepreneur, and a farmer in Africa, the Middle East, Europe, South America and the US and was involved in numerous humanitarian projects in Africa. NOTE: About 1986 he was charged with unlawful receipt of a .460 caliber Weatherby MKV rifle and a .20 gauge Browning shotgun, in violation of section 922(h)(1). Count Two charged that Winson knowingly made a false statement to the dealer in order to obtain the guns mentioned in Count One, in violation of section 922(a)(6).Count Three charged Winson with unlawful receipt of a .243 caliber Colt rifle, in violation of section 922(h)(1). Count Four charged that Winson knowingly made a false statement to the dealer in order to obtain the gun mentioned in Count Three, in violation of section 922(a)(6). Counts One and Three charging violations of section 922(h)(1) are predicated upon two convictions alleged by the government to have been obtained in foreign countries: a 1970 conviction by an Argentinian court of possessing counterfeit United States currency and a 1976 conviction of fraud by a Swiss court. Counts Two and Four charging violations of section 922(a)(6) are predicated upon Winson’s failure to disclose these convictions to the dealer when he bought the guns at issue here. Winson filed a motion to dismiss the indictment in the district court arguing that section 922(h)(1) does not embrace convictions obtained in foreign courts.

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