Wellness Co. CEO Pleads Guilty To Penny Stock Fraud

Law360 (June 12, 2019, 2:27 PM EDT) -- A Chicago wellness company CEO pled guilty to securities fraud in Illinois federal court Tuesday in the government’s suit over penny stock manipulation, less than a year after the executive settled a suit with the U.S. Securities and Exchange Commission over similar allegations.

Andrew Kandalepas, the CEO and board chair of health supplements company Wellness Center USA Inc., faces a possible multiyear prison sentence and could be made to pay restitution, according to the agreement.

Prosecutors said they would seek a sentencing guidelines range of about four to five years, while Kandalepas said the guidelines should be lower, at between two...

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