Wednesday, August 2, 2006

Morgenthau's Office Indicts Eight Stock Brokers

The feds are not the only ones proceeding against stock brokers.  In a bold move:

"Manhattan District Attorney Robert M. Morgenthau announced today the indictment of eight Wall Street stock brokers for defrauding customers of at least $13 million.  Six of the indicted brokers are charged with racketeering; four corporate entities through which the defendants carried out their criminal scheme have also been indicted."

The Press Release from Morgenthau's Office states here:

"The indictment alleges that the defendants ran a criminal enterprise at a succession of three Manhattan brokerage firms, defrauding hundreds of customers from April 2000 through October 2005.  It is alleged that the defendants fraudulently induced customers to buy shares of Stratus Services Group, Inc., a thinly traded, microcap stock, in order to artificially raise, maintain, and manipulate Stratus’s market price."

(esp)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2006/08/morgenthaus_off.html

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