A 6th Guilty Plea in Stock Manipulation Scheme That Sent Ex-Council Member to Prison
Another discredited stock broker pleaded guilty to scams and tax charges Wednesday, confessing he belonged to a group of disbarred securities traders who assisted bring off the $20 million stock rip-off that sent out previous Hartford city councilor Corey Brinson to jail.
Brian Ferraioli, 40, of Sayville, N.Y., is the 6th person to plead guilty in the event. 4 of the 6, consisting of Ferraioli, are Long Island guys with histories of securities offenses who took part in a series of Connecticut-based stock adjustments starting a year’s approximately earlier.
Federal district attorneys have stated the adjustments captured more than 12,000 victims throughout the nation, much of whom are retired people and lost life cost savings. The examination is continuing and more arrests are anticipated.
The conspirators ran what is called a pump-and-dump plan. They obtained blocks of stock in useless shell business and after that pitched the business to financiers as being on the cusp of a commercial advancement, frequently in fields such as uncommon earth mining or software application advancement.
The stock manipulators used rigged stock trades, fake statements about business advancements and other deceptive means to pump up share rates of the stock, much which they managed. The conspirators discarded or offered their blocks of stock as costs increased, collapsing share value and leaving unwitting financiers with useless shares.
Because of the variety of victims, losses, and elegance of the plan, those who have currently pleaded guilty face as much as 15 years in jail.
Federal government records and disclosures in court determine Christian Meissenn, also called Christian Nigohossian, of Suffield as a leader of the plan. Meissenn, 44, is related to a lot approximately organizations and residential or commercial properties throughout the state. He pleaded guilty to conspiracy and tax evasion charges late in 2015 and is complying with authorities.
Meissenn and his lawyer have decreased to discuss his business endeavors.
The Financial Industry Regulatory Authority, a regulative company moneyed by the securities market, reports that over the years before relocating to Connecticut, Meissenn worked for a half-dozen New York-area brokerage services, 4 which were expelled by FINRA for breaching market guidelines.
Meissenn was disallowed personally from the market by FINRA in addition to the state banking department, prior to the date of many the offenses with which he is now charged.
Federal district attorneys have stated in court that Ferraioli served as a salesperson for Meissenn and was paid a quarter of whatever he might convince his victims to invest. They stated Ferraioli personally gathered about $1.25 million. He is implicated of laundering the cash by moving it through trust accounts developed by attorneys hired by the stock conspirators.
The district attorneys stated there were other salesmen dealing with Meissenn and other conspirators. All have comparable work histories and, like Ferraioli had worked formerly with Meissenn for New York securities companies that were later expelled by FINRA or nearby federal government regulators.
FINRA Disallowed Ferraioli in 2007
Among the law office, Ferraioli used to conceal his sales incomes was Brinson’s, federal district attorneys stated. Previously this year, Brinson was sentenced to 3 years in jail and fined $1.5 million. District attorneys stated the stock manipulators paid him for using his law practice trust account and to sign main letters that seemingly licensed the authenticity of the counterfeit stock offerings.
Other law workplaces connected with the stock manipulators also are being examined, legal representatives acquainted with the case stated.