October 28, 2021

Volume XI, Number 301

Advertisement
Advertisement

October 28, 2021

Subscribe to Latest Legal News and Analysis

October 27, 2021

Subscribe to Latest Legal News and Analysis

October 26, 2021

Subscribe to Latest Legal News and Analysis

October 25, 2021

Subscribe to Latest Legal News and Analysis

Eleventh Circuit Upholds Convictions in “Pump-and-Dump” Stock Fraud Scheme

The US Court of Appeals for the Eleventh Circuit recently upheld convictions for defendants who engaged in an illegal pump-and-dump stock manipulation scheme.  Defendants, who participated with seven others in a conspiracy to defraud the investing public through a pump-and-dump scheme of shares of CO2 Tech Ltd. stock, issued false and misleading press releases and other promotional materials and coordinated the activities of CO2 Tech stock sellers and buyers. The scheme left unsuspecting investors with worthless shares of CO2 Tech stock. Defendants were charged with conspiracy to commit securities fraud, wire fraud and mail fraud. They were found guilty on all counts after a jury trial.  

Defendants appealed on numerous grounds, including on the ground that the US District Court for the Southern District of Florida erred in admitting evidence in violation of the Federal Rules of Evidence. The Eleventh Circuit found that, while there may have been a question about whether the district court abused its discretion in admitting such evidence, any error was harmless as the record provided “overwhelming evidence of defendants’ fraud.” Therefore, the court affirmed the defendants’ convictions and sentences.   

US v. Curshen, et al., Nos. 12-12658, 12-12659 (11th Cir. May 28, 2014).

©2021 Katten Muchin Rosenman LLPNational Law Review, Volume IV, Number 157
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Our Corporate Practice provides sophisticated transactional representation and business counseling to national and global companies in a wide range of industries. Attorneys in the practice work closely with those from other disciplines to provide our clients with comprehensive representation in their business transactions.

Every attorney in our Corporate Practice is dedicated to making sure that each client receives a high degree of personal attention, and that the correct combination of legal talent is assigned to each matter. We believe that our clients’ business objectives should...

310-788-4690
Advertisement
Advertisement
Advertisement