Gregg Berger Sentenced for International Stock Broker Fraud Scheme
Last week, a New York stock broker was sentenced to 24 months in prison for his part in an international stock conspiracy. Gregg Berger of New York, who plead guilty to the charges, was ordered to serve three years of supervised release following his 24 month prison term. Berger also agreed to forfeit a total of $600,000 to the United States.
The scheme involved the use of mass generated commercial emails (spamming), illegally, to promote Chinese "penny" stocks, which then artificially increased their prices. The fraud worked as a "pump and dump," whereby once the prices were artificially inflated, Berger would then quickly sell the stocks, cashing out a hefty profit. The attorney general stated that, “Mr Berger used his position as a stock broker to generate more than $30 million in illegal proceeds for his co-conspirators, and more than half a million dollars for himself."
The case involved a somewhat complicated conspiracy whereby Berger established and managed brokerage accounts, and also transferred proceeds to bank accounts of his co-conspirators--whom directed him to establish the brokerage accounts in the first place. The $600,000 amount was based on the commission he earned for making the trades.
Stock Broker Fraud Generally
Stock Broker fraud can take many forms. In addition to the fraud that occurs when a broker fraudulently touts the merits of a stock to which such acclaim is undue, stock brokers may also make recommendations that can amount to securities fraud. Stock brokers have professional and ethical responsibilities to their clients, such as those regarding Suitability and Due Diligence.
If you feel that you have been defrauded or misled by your stock broker, you may have a claim. Contact an experienced stock broker fraud attorney in your area.
Click to find out more about stock broker fraud.
Click to find a stock broker fraud attorney.
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