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,...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.