Saturday, April 1, 2006

Guilty Pleas on Stock Fraud Scheme

Fraud Update includes a link here to a press release from the US Attorney's Office for the Western District of Virginia telling of pleas entered by two individuals to the crime of conspiracy to commit money laundering.  According to the press release:

"Evidence presented during the defendants’ plea hearings showed that beginning some time in 1997, there was a well-planned scheme to convince stock investors to purchase non-existent stock. The scheme involved the use of a bank account at a Chase Manhattan Bank branch in New York that was set up in the Oppenheimer name and that was used, in part, to launder the funds by having people like the defendants find a way to cash “Oppenheimer” checks. During this scheme, someone also set up a mailbox with a “67 Wall Street” address to which investors sent checks that they believed were being mailed to Oppenheimer and were being used to purchase real stocks. The Wall Street address, however, did not in fact belong to Oppenheimer but rather was the address of a company that provided mail services for small businesses and individuals."

(esp)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2006/04/guity_pleas_on_.html

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