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Pastimes : Investment Chat Board Lawsuits -- Ignore unavailable to you. Want to Upgrade?

To: scion who wrote (11399)	5/19/2011 7:19:36 PM
From: scion	Respond to of 12465

Calif. man sentenced in Del. for securities fraud By TERRI SANGINITI The News Journal May 19, 2011 m.delawareonline.com A 27-year-old California man was sentenced to four years in jail for fraudulently conspiring with others to manipulate the price of certain penny stocks and launder the cash proceeds. Matthew W. Brown, of Tustin, was sentenced in U.S. District Court after pleading guilty earlier this year to two counts each of conspiracy to commit securities fraud and money laundering, said prosecutor Vickie E. Leduc. U.S. District Judge Sue L. Robinson also fined Brown $50,000, ordered him to forfeit $4,798,138 to the United States and barred him from working in the securities industry during his three years of supervised release. Brown and his five co-conspirators are believed to have raked in more than $6 million in 2006 and 2007 by deceiving investors across the country to buy penny stocks. The goal was to induce the investors to purchase the stocks based on the artificial trading volume and thus increase the price of the stock. In the two years Brown and his co-conspirators operated the securities scam, they generated millions of dollars in proceeds from sales of the penny stocks. The operation was a "pump and dump" scheme in which the conspirators work with officials from a targeted company to pump up a stock price with manufactured stock activity and them dump all the shares when that stock reached a profitable level. The securities involved in Brown's case were GH3 International, Inc. and Asia Global Holdings Corp., according to the indictment. m.delawareonline.com