The SEC has charged Larry Wilcox, along with several other people, with paying kickbacks to corrupt money managers or stockbrokers as part of a penny-stock scheme.
In each instance, the Defendants attempted to conceal the kickback by entering into a consulting agreement with a phony company the trustee purportedly created to receive the kickback. Unbeknownst to the Defendants, the company was a fiction the FBI created for this sting.
You would think he would have guessed they were being framed, given his background in law enforcement. That's gotta sting.