% | $
Quotes you view appear here for quick access.

Corrections Corporation of America Message Board

  • lmtrack lmtrack May 4, 2000 10:23 PM Flag

    Enterprise Corruption?

    Shucks, these guys are pikers compared to

    NEW YORK (AP) -- More than 40 employees of a
    securities firm that has been the target of several
    investigations have been charged with promoting worthless stock,
    costing investors
    more than $83 million.

    Manhattan District Attorney Robert Morgenthau said 22
    people pleaded guilty and 20 others have been indicted
    for lying to 16,000 investors about themselves, their
    firm and the stock they were selling.

    The firm
    itself, Meyers Pollock Robbins Inc., was indicted and
    charged with enterprise corruption, Morgenthau said. The
    company had offices in Manhattan, Long Island, Las Vegas,
    and Fort Lauderdale and Boca Raton, Fla.

    brokerage, shut down by state regulators in 1997, was the
    workplace of many past grand jury targets, including some
    salesmen who took bribes from mobsters to promote specific
    stocks and thereby drive up share prices.

    mobsters plead guilty

    For example, Michael Paul
    Cilmi, 34, of Brooklyn pleaded guilty last week to
    enterprise corruption for crimes committed at Meyers Pollock
    and A.S. Goldmen, another brokerage. He faces up to
    25 years in prison when he is sentenced June 27.

    In January, four reputed mobsters pleaded guilty in
    Manhattan's U.S. District Court to charges of forcing brokers
    at Meyers Pollock to promote a stock in a 1997
    scheme that netted them more than $1.3 million.

    Morgenthau said many of the defendants knew each other
    because they had crossed paths while working at other
    crooked brokerages.

    'Make Wall Street safe'

    Morgenthau said the current indictment covers frauds in
    which the investors lost $83 million, but he estimated
    that the total investment lost during the company's
    existence from 1992 until 1997 was about $176 million. In
    that time, he said, Meyers Pollock brokers pushed
    almost two dozen worthless stocks.

    District Attorney John Moscow, who headed the
    investigation, said some of the worthless securities were listed
    on stock exchanges and others were not. None of
    those stocks are traded now, he said.

    Borg of the Alabama Securities Commission, which
    participated in the investigation, said, "You've got to make
    Wall Street safe for the Main Street investor. We've
    gone from being a nation of savers to a nation of

    One Meyers Pollock victim was a
    nursing-home resident who lost more than $100,000 after the
    company's brokers made unauthorized trades, Morgenthau
    said. He said she lost 95 percent of her money and her
    son-in-law had to take a second job so that she could stay
    in the nursing home.

    Morgenthau said 19 of
    the 20 who were named in the current indictment but
    have not pleaded guilty were in custody, and one was a
    fugitive in Canada.

    The top count in the
    indictment, enterprise corruption, is punishable by up to 25
    years in prison. Lesser larceny, bribery, business
    violations and related counts have maximum penalties that
    range from four to 15 years.

35.24+0.23(+0.66%)May 22 4:04 PMEDT