How's that lawsuit going Isaac?: "President of Defunct Securities Firm Pleads Guilty to Racketeering Charge
Associated Press
NEW YORK -- The former president of Meyers Pollock Robbins, a
now-defunct securities firm that caused investors to lose more than $83
million, pleaded guilty Wednesday to racketeering.
Michael Ploshnick, 56 years old, of Boca
Raton, Fla., headed Meyers Pollock Robbins
Inc., which was described by prosecutors as a
multistate "pump and dump" stock fraud
operation that was indicted along with more
than 40 of its employees.
The company, which had been the subject of
several state and federal investigations, had
offices in Manhattan; Melville, on Long Island;
Las Vegas; Boca Raton and Fort Lauderdale,
Fla., all of which closed in 1997.
Mr. Ploshnick admitted to State Supreme Court Justice Bernard Fried that
he promoted stock that he knew was worthless and caused investors to
lose millions of dollars. "I was responsible, your honor," he said.
Mr. Ploshnick had faced up to 25 years in prison, but he pleaded as part
of an agreement by which his sentence could be reduced to as little as one
to three years, depending how much he helps prosecutors.
Justice Fried didn't promise a specific sentence or set a sentencing date.
Mr. Ploshnick also was fined $5 million, which defense and prosecution
lawyers said represented at least twice what investigators believe he
personally gained through the stock swindles.
His lawyer, Charles Stillman, told Justice Fried, "Mr. Ploshnick has no
funds."
Mr. Stillman also entered a guilty plea for Meyers Pollock. He said any
fine that Justice Fried assesses the firm will be paid partly by funds held by
the investment bank. He said that amount is $400,000 to $600,000.
About 20 others have pleaded guilty in connection with the firm's illegal
acts. In pleading, Mr. Ploshnick implicated 17 of the 21 other defendants
who have continued to plead innocent.
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