recieved this via e-mail so I don't have a link
Mob, Brokers in `Largest Securities Fraud,' U.S. Says (Update1)
6/14/0 11:11 (New York)
Mob, Brokers in `Largest Securities Fraud,' U.S. Says (Update1)
(Updates with details of the cases.)
New York, June 14 (Bloomberg) -- More than 100 defendants,
including members and associates of five organized crime families,
have been charged in what federal prosecutors are calling ``the
largest securities fraud takedown in history.''
The 120 defendants were charged in 16 indictments and seven
criminal complaints unsealed today in U.S. District Court in
Manhattan. Prosecutors said the cases involve fraud in connection
with 19 public companies and the private placement of securities
in 16 others, including Ranch*1 Inc., which operates fast-food
chicken outlets.
In addition to the alleged mobsters, prosecutors have charged
stock promoters, brokers, officers of several companies, a New
York City police detective, and a ``major West Coast investment
adviser,'' U.S. Attorney Mary Jo White said in a statement.
The defendants were ``allegedly involved in a series of
nationwide, multimillion-dollar securities schemes marked by
racketeering, bribery, extortion, solicitation of murder, and
other crimes,'' the statement said.
The indictments allege that mobsters from the Bonanno and
Colombo crime families, ``perpetrated massive securities fraud''
over five years by forging alliances with New York's three other
crime families. Prosecutors said the mobsters infiltrated broker-
dealers, conspired with stock brokers, and schemed to defraud
union pension plans.
Prosecutors also allege that the mobsters secretly controlled
various New York City-area brokerages, including Monitor
Investment Group Inc., First Liberty Investment Group Inc.,
William Scott & Co., Atlantic General Financial Group, and the
defunct Meyers Pollock and Robbins.
Organized crime figures are alleged to have subjected brokers
to `beatings, intimidation, and threats'' to ``enforce discipline
among brokers.''
``The schemers used traditional boiler-room operations and
current Internet techniques to carry out their alleged crimes,''
the statement said.
The conspiracy cost investors roughly $50 million,
prosecutors said. White said the cases represented the largest
number of defendants ever arrested at one time on securities fraud
charges.
Among the publicly traded companies whose stocks were
allegedly manipulated were Beachport Entertainment Corp., Reclaim
Inc., Accessible Software Inc., and International Nursing Services
Inc., prosecutors said.
--David Glovin in U.S. District Court in New York (212) 732-9245,
or at dglovin@bloomberg.net, through the New York newsroom (212)
893-3665 /jhr/ep |
