13 Charged In Microcap Kickbacks Scheme

Law360, New York (December 1, 2011, 7:02 PM EST) -- Federal prosecutors in Massachusetts on Thursday charged 13 people for their alleged roles in a kickbacks scheme that was used to generate trading in microcap stocks, part of an ongoing crackdown on fraud in microcap stocks.

According to criminal informations filed in Massachusetts federal court, the 13 defendants allegedly agreed to pay kickbacks to a representative of an unnamed major investment firm in exchange for a $5 million investment in seven microcap companies. The defendants agreed to send $2.5 million back to the investment fund representative,...
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