A Franklin Lakes New Jersey stockbroker faces federal charges for fraud crimes in connection with a major stock scam.
According to federal officials, the illegal scheme, which ran from 2009 to March 2015, was masterminded by someone who was previously convicted on fraud charges. The 43-year-old Franklin Lakes stockbroker reportedly accepted two payments totaling $35,000 in exchange for his role in the scheme to trade VGTel Inc. stock at inflated prices.
The 63-year-old man allegedly behind the stock swindle is said to have secretly controlled the stock while setting up phony sales to inflate its value. Federal prosecutors said that he netted in excess of $15 million from roughly 100 investors.
Now the Franklin Lakes NJ suspect has been charged in the case. He faces federal charges for conspiracy, securities fraud, wire fraud, and perjury.
The suspect will be required to appear in the U.S. District Court for the Southern District of New York so that he can answer the charges against him. If he is convicted on the most serious charges, he could be sentenced to decades in prison and fined up to $5 million.
Two other people already pleaded guilty to federal charges in connection with the stock scheme. They are said to be cooperating as government witnesses in the federal case against the Franklin Lakes stockbroker.
Moreover, other individuals charged in connection with the scam include a 52-year-old adviser from Los Angeles, California and a 67-year-old investment adviser from Cleveland, OH.
For further information about this case, read the NJ.com article, “Stockbroker from Franklin Lakes Arrested in Connection with Alleged $15M Fraud.”