Financier faces new charges
May 13, 2006
By JOE CREWS
Business Writer
Daniel Rubin, the millionaire financial whiz kid who owns Lake Helen-based lawyer-referral firm 1-800-ATTORNEY, was arraigned in New York federal court this week on new securities fraud charges.
As a result of the new charges, Rubin and co-defendant Scott Halperin of New Jersey were granted a delay in their trial from June 12 to Nov. 13.
Rubin and Halperin, acting through Rubin Investment Group Inc., are accused of manipulating the stock prices of several companies in a classic "pump-and-dump" scheme, officials said at the time of his original arrest in October 2003.
"Mr. Rubin has entered a plea of not guilty to all the charges," said Rubin's attorney, Marc Mukasey. "He intends to take the case to trial and to be fully exonerated at trial."
Rubin Investment Group is a private investment banking firm Rubin started in 1998 when he was 26 years old. The indictment alleges he acquired 1-800-ATTORNEY by purchasing 83 percent of its stock at below-market prices without providing investment cash he promised.
Rubin originally was charged with Halperin in manipulating the stock prices of The Classica Group Inc. and Marx Toys and Entertainment Corp., both based in New Jersey. Halperin was the chief executive of Classica and chairman of the board at Marx Toys.
The new indictment, however, says Rubin forced a number of additional companies to issue stock at artificially low prices to his investment group, then made a series of duplicate trades that caused the stock prices to rise before he sold them.
Rubin and Halperin are both charged with conspiracy to commit securities fraud. Rubin also faces seven counts of securities fraud, three counts of mail fraud and one of money laundering conspiracy. Halperin also is charged with two counts of securities fraud.
Two other co-defendants -- Glen Santha, who worked at Rubin's Lake Helen office, and Daniel Nourani, who worked at Rubin's Los Angeles office -- pleaded guilty earlier to similar charges.
joe.crews@news-jrnl.com |
