6 charged in $140M NY securities case

July 8, 2009 10:17:08 AM PDT
Six men have been charged with conspiracy to commit securities fraud, accused in a $140 million investment fraud and stock manipulation scheme. The charges were in an indictment unsealed Wednesday in federal court in Manhattan.

Prosecutors accused the men of using two Wall Street securities companies to rip off clients from 1998 through 2006.

They say the men made misrepresentations and left out key information. They induced victims to invest in opportunities that supposedly would yield huge returns.

But the government says investor money was instead used to enrich the defendants. It also was used to pay excessive undisclosed commissions to brokers and to pay off early victims in the fraud.


NEW YORK AND TRI-STATE AREA NEWS

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