$50 Million Lost to Fraudsters Posing as Broker-Dealers

A man from California confessed his involvement in a large-scale and long-running Internet-based fraud scam that enabled him and other fraudsters to steal about $50 million from dozens of investors over an eight-year period, from 2012 to October 2020.

From in or around 2012 through on or about October 27, 2020, in Morris County, in the District of New Jersey, and elsewhere, the defendant, ALLEN GILTMAN did knowingly and intentionally conspire and agree with others to, by use of the means and instrumentalities of interstate commerce, the mails, and facilities of national securities exchanges, directly and indirectly, knowingly and willfully use manipulative and deceptive devices and contrivances in contravention of Title 17, Code of Federal Regulations, Section 240. l0b-5 in connection with the purchases and sales of securities, to wit, Certificates of Deposit offered through various fictitious entities, by

(a) employing devices, schemes and artifices to defraud;

(b) making untrue statements of material fact and omitting to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading;

and

(c) engaging in acts, practices and courses of business which operated and would operate as a fraud

Read More: https://heimdalsecurity.com/blog/50-million-lost-to-fraudsters-posing-as-broker-dealers/