Former Breezy Point council member pleads guilty to fraud

A former Breezy Point City Council member entered a guilty plea Thursday to securities fraud charges for manipulating stock prices and profiting from it.

Mark A. Miller "participated in a scheme to hijack and assume control over dormant public shell companies," according to a news release from the U.S. Attorney's Office. He would then use his control over the companies to manipulate and increase the price of the stock so he could profit from selling it to unknowing investors.

Miller resigned from his City Council seat in Breezy Point, a town of about 2,346 in the Brainerd Lakes area in June.

Christopher James Rajkaran, 36, of New York and Guyana, also entered a guilty plea agreement. Rajkaran and Miller both pleaded guilty to one count of conspiracy to commit securities fraud, according to the release.

The indictment lists four stocks that were allegedly manipulated by Miller and/or other defendants between 2017 and 2019, including Digitiliti Inc., a dormant Minnesota company that purported to provide online data protection.

Miller allegedly hijacked and assumed control of Digitiliti in September 2017 by drafting a fake resignation letter and board minutes falsely stating that the company's prior CEO had resigned — and that he was the new CEO, according to the indictment. He bought 50,000 shares in the company soon thereafter.

In July 2018, Miller issued a news release falsely claiming that Digitiliti had entered negotiations to be bought out by a private company with "a proven track record of revenue generation and success in a highly desirable market sector," the indictment continued.

Prosecutors say the release "was designed to pump up and fraudulently inflate the price of Digitiliti stock so that Miller could sell his shares at a profit." The court filing did not say how much, if any, profit Miller made on Digitiliti.

However, the indictment alleges that Miller made returns on the shares of three other hijacked shell companies — Bell Buckle Holdings, Encompass Holdings and Utilicraft Aerospace Industries — of nearly 900%, more than 300% and approximately 140% respectively.

Alleged co-conspirator Saeid Jaberian, 59, of Hopkins, has pleaded not guilty to conspiracy, securities fraud, and wire fraud charges, according to the release.

Staff writer Mike Hughlett contributed to this report. Alex Chhith • 612-673-4759