Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Economy
Related: About this forumSecurities Trader Indicted In Scheme That Netted Tens Of Millions Of Dollars In Illicit Profits
https://www.justice.gov/usao-nj/pr/securities-trader-indicted-scheme-netted-tens-millions-dollars-illicit-profitsDepartment of Justice
U.S. Attorneys Office
District of New Jersey
FOR IMMEDIATE RELEASE
Wednesday, February 21, 2018
Securities Trader Indicted In Scheme That Netted Tens Of Millions Of Dollars In Illicit Profits
NEWARK, N.J. A New Jersey-based securities trader was indicted today on additional charges stemming from his alleged role in orchestrating a massive, long-running market manipulation scheme that netted tens of millions of dollars in illegal profits between 2014 and 2016, U.S. Attorney Craig Carpenito announced. Joseph Taub, 38, of Clifton, New Jersey, was first charged by complaint with securities fraud conspiracy in 2016. Todays 13-count indictment charges him with securities fraud conspiracy, market manipulation conspiracy, multiple substantive securities fraud and market manipulation counts, and tax fraud conspiracy. Taub will be arraigned before U.S. District Judge John Michael Vazquez at a later date.
(snip)
From 2014 to 2016, Taub and others conspired to manipulate securities prices of numerous public companies by coordinating trading in dozens of brokerage accounts that they secretly controlled. As part of the scheme, Taub and others engaged in a series of near simultaneous transactions in targeted securities that were designed to artificially influence the market price of the securities and induce other market participants to trade based on the false impression that there was real market interest.
Taub and others allegedly used straw accounts that were held in their names, the names of their family members, and the names of entities they controlled. Many of the accounts were opened in the names of individuals who neither controlled the accounts nor traded the securities held in the accounts. Taub funded many of these accounts and used the straw account holders to conceal the scheme from regulators and law enforcement.
The fraudulent trades typically involved two types of straw accounts. First, a Winner Account purchased a large block of shares in a particular security. Next, a Loser Account placed multiple small orders in the same security to create upward pressure on the stock price. Once the price of the security moved higher due to the Loser Accounts manipulative orders, the conspirators sold their large position in the Winner Account and the shares from any executed trades in the Loser Account. While the Loser Accounts would generally lose money, the conspirators expected the gains from the Winner Accounts to more than make up for them.
In addition, Taub allegedly conspired with accountant Shaun Greenwald, 40, of Cedarhurst, New York, and others to defraud the United States by hiding from the brokerage firms and the IRS the identities of who actually controlled the straw accounts and who reaped the majority of the profits from the scheme. As a result, the profits from the straw accounts were taxed at the lower tax rates applicable to the straw account holders instead of the higher tax rates applicable to Taub and other members of the conspiracy.
(snip)
The U.S. Attorneys Office has filed a separate civil action seeking forfeiture of brokerage accounts in which the manipulative trades were executed, bank and brokerage accounts funded with proceeds of the scheme, and Taubs interest in companies in which he invested the proceeds of the scheme. Civil forfeiture cases are in rem proceedings proceedings against things. The forfeiture claims in this case are based on allegations that the forfeitable property is proceeds of the securities fraud scheme or is property involved in laundering the proceeds of the scheme. That civil forfeiture action is pending.
(snip)
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
2 replies, 788 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (0)
ReplyReply to this post
2 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Securities Trader Indicted In Scheme That Netted Tens Of Millions Of Dollars In Illicit Profits (Original Post)
nitpicker
Feb 2018
OP
nitpicker
(7,153 posts)1. Link to the DoJ PR on the earlier indictment
Farmer-Rick
(10,185 posts)2. What a bunch of crooks
Regulations on financial transactions has continued to decrease And yet these yahoos can't even follow the few rules that remain.