Legal Issues

Authorities in New York have brought charges against 14 people they say were involved in a US$147 million stock scheme.

Newsday reports that the 10 New York defendants named in the Securities and Exchange Commission case pleaded not guilty Wednesday in federal court in Brooklyn.

Prosecutors say the group pressured investors into buying stocks that were manipulated while working out of two boiler rooms on Long Island.

The SEC says the suspects partnered with four out-of-state corporate insiders who provided penny stocks at below-market value. Officials say the prices of those stocks were artificially driven up before the suspects dumped their own shares.

The SEC says more than 100 investors lost money in the scheme.

“The defendants designed an elaborate, fraudulent scheme to defraud the investing public, preying in particular upon unsuspecting and elderly investors,” said Brooklyn acting U.S. Attorney Bridget Rohde, as quoted by Newsday.

Read the full story here.

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