Feds Arrest 6 In $140M Penny Stock Fraud Scam

Law360, New York (August 13, 2013, 4:22 PM EDT) -- Six men have been arrested on federal charges that they sold investors fraudulent penny stocks in a $140 million scheme in which prosecutors say some of the men then pressured some victims to pay advance fees to join a fictional lawsuit over the scam, officials said Tuesday.

The men arrested Tuesday were among nine named in a July 31 indictment and Aug. 7 superseding indictment in New York federal court. Prosecutors said the men executed a “pump and dump” scheme in which they hyped worthless penny...
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.