Tuesday, February 21, 2012
The New York Appellate Division for the First Judicial Department has disbarred an attorney convicted of offenses described in the court's order:
Respondent and a codefendant were indicted for various felonies relating to their participation between 2004 and 2008 in a massive securities fraud "pump-and-dump" scheme whereby they artificially inflated stock prices of Industrial Enterprises of America, Inc. before selling off essentially worthless shares of stock to a series of investors, which destroyed the value of the company and drove it into bankruptcy.
On July 19, 2011, in Supreme Court, New York County, respondent was convicted, after a jury trial, of 30 felonies, to wit, grand larceny in the first degree in violation of Penal Law § 155.42 (2 counts), a class B felony; scheme to defraud in the first degree in violation of Penal Law § 190.65(1)(b), a class E felony; conspiracy in the fourth degree in violation of Penal Law § 105.10(1), a class E felony; falsifying business records in the first degree in violation of Penal Law § 175.10 (24 counts), a class E felony; and violation of General Business Law § 352-c(5) and (6) (Martin Act), class E felonies (see Ex. B).
On September 9, 2011, respondent was sentenced to 1 1/3 to 4 years on the class E felonies to run concurrently to 7 to 21 years on the class B felonies, and was ordered to make restitution in the sum of $7 million.