|
 Abraxas "A.J." Discala, 44, the chief executive of OmniView
Capital Advisors and former husband of Sigler, and six other
defendants face charges of fraudulently inflating the prices of
thinly-traded penny stocks, selling them to unsuspecting elderly
people and other investors, and keeping the profits.
Sigler has not been charged or accused of wrongdoing. She played
Tony Soprano's daughter Meadow in "The Sopranos," an HBO
television drama.
Federal prosecutors in Brooklyn, New York have said the
"pump-and-dump" scheme lasted from Oct. 2012 to July 2014 and
involved trades in four publicly-traded companies.
Prosecutors said the defendants' activities boosted the stocks'
market valuations to $300 million and caused investor losses of
at least $50 million in a single stock, CodeSmart Holdings Inc.
Those arrested on Wednesday include Michael Morris, 63, of
Merrick, New York, who was chief executive of New York-based
Halcyon Cabot Partners Ltd; Darren Ofsink, 46, a lawyer from
Merrick; and Darren Goodrich, 37, a broker from Manhattan Beach,
California.
They join Discala and three others facing charges under an
amended 11-count indictment alleging securities fraud, wire
fraud and conspiracy. Discala is the only individual charged
with all 11 counts.
[to top of second column] |
 The case was made public in July 2014. Ten people have been
charged overall, and three have pleaded guilty.
"Nothing in this new indictment changes the fact that A.J.
Discala is a completely innocent man," his lawyer Charles Ross
said. "We look forward to demonstrating this in court."
It was not immediately clear whether the new defendants have
hired lawyers. The U.S. Securities and Exchange Commission is
pursuing related civil charges against some of the defendants, and
others who have not been criminally charged.
The Financial Industry Regulatory Authority, a Wall Street
regulator, on Oct. 7 said it expelled Halcyon and barred Morris from
the securities industry for an alleged scheme to conceal fee
kickbacks.
The case is U.S. v. Discala et al, U.S. District Court, Eastern
District of New York, No. 14-cr-00399.
(Reporting by Jonathan Stempel in New York; Editing by Grant McCool
and Alan Crosby)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed. |
