In a plot that could have been lifted straight from the script of “The Wolf of Wall Street,” six North Shore residents were among 14 indicted in federal court in Brooklyn July 13 for their alleged roles in a $147 million stock manipulation scheme, according to the U.S. Attorney’s Office for the Eastern District of New York.
A press release regarding the indictment alleged the defendants defrauded investors by obtaining shares in five publicly traded companies from insiders at the companies for below-market prices, artificially drove up the prices of the shares, while “aggressively and repeatedly” calling and emailing victims to purchase shares — oftentimes senior citizens — and then sold their own shares between January 2014 and July 2017.
“Manipulating stock prices, as alleged in this case, to appear more attractive to investors, is a deliberate attempt at sabotaging fair market trading,” Assistant Director-in-Charge for the FBI’s New York field office William Sweeney Jr. said in a statement. Sweeney and acting U.S. Attorney Bridget Rohde read the indictments. “Manipulation, at its core, is a true act of deception, especially when the elderly are targeted. This scheme involved an incredible amount of money, more than $147 million. That’s no small change for even the savviest investor. As evidenced by our arrests today, we take these matters seriously, and will continue to pursue those who make victims out of unwitting participants in these schemes.”
Managers of My Street Research — a Melville based investment firm — Erik Matz, 44, of Mount Sinai and Ronald Hardy, 42, of Port Jefferson were among those indicted. They also engaged in a scheme to launder about $14.7 million in proceeds obtained as a result of the scheme, according to Rohde’s office. The government restrained Matz’s Mount Sinai home and seized bank accounts containing alleged criminally obtained money. The attorney representing Matz and Hardy did not respond to a request for comment. A phone message requesting comment from My Street Research was not returned.
Dennis Verderosa, 67, and Emin L. Cohen, 33, both of Coram, and McArthur Jean, 34, of Dix Hills were among those listed as “cold-callers” for the operation.
Cohen’s and Verderosa’s attorneys each declined to comment via email. Jean’s attorney did not respond to a request for comment.
Robert Gilbert, 51, of Cold Spring Harbor and owner of the investment firm Accredited Investor Preview was also among the 14 people indicted.
“We’re still studying the indictment, but Mr. Gilbert is mentioned substantively in only one paragraph,” Gilbert’s attorney Ira Sorkin said in a phone interview. “He has not been incarcerated, and there is no claim any of his assets have been frozen as is the case with some of the others. Until we have a chance to read further into the indictment we will have no further comment.”
The five companies whose stocks were pushed by the “pump-and-dump” scheme were National Waste Management Holdings, Inc., CES Synergies, Inc., Grilled Cheese Truck, Hydrocarb Energy Corporation and Intelligent Content Enterprises, Inc.
Editor’s note: Anyone victimized by the alleged scheme can contact the writer of this story via email at [email protected]