{"id":4165,"date":"2017-02-10T15:27:50","date_gmt":"2017-02-10T21:27:50","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4165"},"modified":"2022-04-28T10:49:26","modified_gmt":"2022-04-28T15:49:26","slug":"securities-fraud-prison-sentence-issued-39m-ohio-penny-stock-scam-sipc-warns-fraud-invoking-name-investors-sue-banc-california","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-fraud-prison-sentence-issued-39m-ohio-penny-stock-scam-sipc-warns-fraud-invoking-name-investors-sue-banc-california\/","title":{"rendered":"Securities Fraud: Prison Sentence Issued in $39M Ohio Penny Stock Scam, SIPC Warns About Fraud Invoking Its Name, & Investors Sue Banc of California"},"content":{"rendered":"

Eight People Implicated in $39M Penny Stock Fraud Get Prison Sentences, Must Pay Restitution <\/strong>
\nIn Ohio, eight people were sentenced to prison terms ranging from almost two years to a dozen years for their involvement in a penny stock scam <\/a>that caused investors to suffer $39M in losses. One of the defendants, Zirk de Maison, received the 12-year sentence. He was ordered to pay $39.1M in restitution. The other defendants also were ordered to pay restitution in lower amounts.<\/p>\n

According to prosecutors, the defendants conspired to bilk investors and potential ones in a number of public issuers. They did this by putting out millions of shares and artificially controlling the price and volume of the shares that were traded. This was accomplished through undisclosed commissions paid to brokers, boiler room operators, and promoters who got investors to invest, as well as through the fraudulent concealment of ownership interests in the companies in which the funds were invested.<\/p>\n

In some instances, brokers and ex-brokers were paid illegal kickbacks of sometimes up to 50%. Clients were not told of these payments. The co-conspirators used most of investors\u2019 money to enrich themselves. Some of the defendants were boiler room owners.<\/p>\n

Continue Reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Eight People Implicated in $39M Penny Stock Fraud Get Prison Sentences, Must Pay Restitution In Ohio, eight people were sentenced to prison terms ranging from almost two years to a dozen years for their involvement in a penny stock scam that caused investors to suffer $39M in losses. One of the defendants, Zirk de Maison, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3741,1],"tags":[2718,2719,2720,2538],"class_list":["post-4165","post","type-post","status-publish","format-standard","hentry","category-securities-fraud","category-uncategorized","tag-banc-of-california","tag-jason-galanis","tag-penny-stock","tag-securities-investor-protection-corporation"],"yoast_head":"\nSecurities Fraud: Prison Sentence Issued in $39M Ohio Penny Stock Scam, SIPC Warns About Fraud Invoking Its Name, & Investors Sue Banc of California — Investor Lawyers Blog — February 10, 2017<\/title>\n<meta name=\"description\" content=\"Eight People Implicated in $39M Penny Stock Fraud Get Prison Sentences, Must Pay Restitution In Ohio, eight people were sentenced to prison terms ranging — February 10, 2017\" 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