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Brokerage Owner Wins Dismissal of $17M Fraud Indictment

Feb. 1, 2017, 5:00 AM

The U.S. took too long to charge an owner of a New York brokerage with orchestrating a $17 million pump-and-dump scheme, a judge ruled in throwing out the indictment (United States v. Gentile, D.N.J., 16-cr-00155, opinion 1/30/17).

Guy Gentile was accused by the government of buying shares of Raven Gold Corp. and Kentucky USA Energy Inc. from 2007 to 2008, then pumping up the shares through manipulative trading and misleading promotional materials. Gentile said in court filings that he cooperated with prosecutors and provided information that led to other arrests.

U.S. District Court Judge Jose Linares in ...

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