TEST-TAKER IN SECURITIES SCAM SENTENCED - May 12, 1997
ÿNEW YORK (Reuter) - A stockbroker accused of taking tests for other brokers in the biggest licensing scam in Wall Street history was sentenced Monday to two to six years in prison.
ÿ Robert Idzi, of Pleasantville, New York, was charged in a 108-count indictment with taking 20 separate tests for 15 brokers in Tennessee, Illinois, Ohio, Kentucky, Michigan, Pennsylvania, Connecticut and New York and faced up to 20 years in prison.
ÿ But in a deal worked out with prosecutors in March, Idzi pleaded guilty to one count of forgery.
ÿ "I have made a lot of serious mistakes, but I have tried to make an effort to rectify those mistakes. All I ask for is mercy from the court," Idzi told Manhattan Supreme Court Judge Edward McLaughlin.
ÿ The judge also fined Idzi $20,000.
ÿ Prosecutors said another accused phony test-taker, Igor Shekhtman, of Encino, California, who also pleaded guilty, will be sentenced later this month to two to six years.
ÿ Evidence uncovered during the nearly three-year investigation revealed that more than 50 brokers paid Idzi and Shekhtman up to $5,000 to take the six-hour licensing examination for them.
ÿ The brokers also promised the two imposters future shares of their commissions, prosecutors said.
ÿ The investigation began in 1994 when an examination proctor noticed the same person taking multiple tests under a number of different names.
ÿ All 53 brokers charged in the case struck plea bargain deals with the Manhattan district attorney. They have been fined from $5,000 to $20,000, and some were also given probation and jail time of up to four months.
ÿ Brokers must pass a series of licensing examinations administered by the National Association of Securities Dealers (NASD) at 56 centers nationwide before they can sell securities to investors.
ÿ All of the defendants have been barred for life from the NASD and prohibited from trading in New York state.
ÿ Most of those indicted worked at 17 small and medium-sized brokerage firms, including Stratton Oakmont, Hanover Sterling & Co. and Gruntal & Co. |
