Franklin Lakes NJ Stockbroker Accused of Stock Scam, Charged with Fraud
A Franklin Lakes NJ stockbroker has been charged with fraud crimes in connection with a stock scam.
According to law enforcement, the illegal scheme was masterminded by another person who had previously been convicted on fraud charges. The stock scam was allegedly carried out between 2009 and March 2015.
The 43-year-old Franklin Lakes man allegedly accepted two payments for a total amount of $35,000 in exchange for participating in a scheme to trade VGTel Inc. stock at inflated values.
The 63-year-old man who allegedly masterminded the scam is said to have secretly controlled stock while arranging for phony sales to inflate its price. He reportedly netted more than $15 million from approximately 100 investors.
Now the Franklin Lakes suspect has been formally charged in the case. He faces federal charges in U.S. District Court in New York for conspiracy, securities fraud, wire fraud, and perjury.
The suspect will have to appear in the U.S. District Court for the Southern District of NY in order to answer the charges against him. If he is ultimately convicted on the most serious federal charges, he faces a lengthy prison sentence and as much as $5 million in monetary fines.
Two other men have already pleaded guilty to multiple criminal charges in connection with the stock scam. They are reportedly cooperating as government witnesses in the case against the Franklin Lakes NJ stockbroker.
Additionally, other individuals who have been charged in the scam include a 52-year-old adviser from Los Angeles, CA and a 67-year-old investment adviser from Cleveland, Ohio.
To learn more about this case, view the NJ.com article, “Stockbroker from Franklin Lakes Arrested in Connection with Alleged $15M Fraud.”