Franklin Lakes NJ Man Charged in Major Stock Scam That Defrauded Investors Out of $15 Million
A stockbroker from Franklin Lakes New Jersey has been charged in federal court with fraud crimes for his alleged involvement in a massive stock swindle.
According to law enforcement officials, the illegal stock scam ran from 2009 to March 2015 and was masterminded by an ex-con who had previously served time for a different stock scheme. The 63-year-old man behind the latest scheme allegedly controlled stock in VGTel Inc. and used the 43-year-old Franklin Lakes NJ man to arrange phony sales.
The plan was reportedly to inflate the value of the stock. To that end, the leader of the scheme allegedly paid the Franklin Lakes stockbroker $35K to make sure that the phony sales went through. Over the course of six years, the scheme allegedly netted the suspects $15 million.
Now the Franklin Lakes man has been charged with federal fraud offenses in the case. He was arrested and charged with conspiracy, securities fraud, wire fraud, and perjury.
The suspect will have to make an appearance in the U.S. District Court for the Southern District of New York in order to address the criminal charges. If he is convicted, he faces decades in federal prison, as well as a fine of up to $5 million.
Two others have already entered guilty pleas in the case. They will reportedly be government witnesses at trial.
For additional information about this case, go to the NJ.com article, “Stockbroker from Franklin Lakes Arrested in Connection with Alleged $15M Fraud.”