$55M Stock Fraud Can't Be Prosecuted In US, 3rd Circ. Told

Law360, Philadelphia (March 19, 2014, 5:05 PM EDT) -- Charges against a former stockbroker convicted of organizing a fraud scheme that bilked two brokerage firms out of some $55 million represented an improper application of federal law on actions that took place abroad, an attorney for the defendant told the Third Circuit on Wednesday.

Scott Splittgerber, an attorney with Bachner & Associates PC, told a three-judge panel that prosecutors had failed to prove that ex-stockbroker George Georgiou’s scheme to manipulate stock prices took place in the United States as required under federal wire and securities...
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