Investment Broker’s Greed Exposed: Bribery Scheme Unravels in New Jersey Court
TRENTON, N.J. – A former New York investment broker’s illicit dealings have been laid bare in a New Jersey federal court, where he pleaded guilty to a commercial bribery scheme.
Brian M. Hirsch, 42, of Farmingdale, New York, admitted to accepting hundreds of thousands of dollars in bribe payments in exchange for more favorable stock allocations. According to documents filed in the case, Hirsch was employed at the New York offices of two investment banking firms, identified as ‘Firm A’ and ‘Firm B.’
Between January 2012 and November 2016, Hirsch accepted numerous cash kickbacks from three individuals – identified as ‘CC#1,’ ‘CC#2,’ and ‘CC#3’ – in exchange for securities from public stock offerings marketed by Firms A and B. The kickback payments were based on an agreed-upon percentage of the profits that CC#1, CC#2, and CC#3 would make from the stock offerings.
Hirsch did not disclose any of these payments to Firms A and B and took steps to conceal his corrupt arrangements with CC#1, CC#2, and CC#3. For instance, Hirsch signed periodic certifications to Firm A falsely representing that he had complied with the firm’s prohibition on ‘quid pro quo’ arrangements or similar pre-determined agreements with investor clients in connection with stock allocations.
Hirsch faces a maximum potential penalty of five years in prison and a $250,000 fine. He also agreed to pay a forfeiture money judgment in an amount to be determined prior to or at the time of sentencing, which is currently scheduled for April 11, 2018.
In a separate civil action, the U.S. Securities and Exchange Commission (SEC) filed a complaint against Hirsch in Trenton federal court.
Defendant Information:
Brian M. Hirsch, a former New York investment broker, pleaded guilty to one count of violating the Travel Act by engaging in a commercial bribery scheme.
City and State: Trenton, N.J.
Date: n/a (plea date)
Sentence: Plea agreement includes a maximum potential penalty of five years in prison and a $250,000 fine. A forfeiture money judgment in an amount to be determined prior to or at the time of sentencing is also part of the agreement.
Dollar Amounts: $550,000 to $1.5 million in kickback payments from CC#1, CC#2, and CC#3.
Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime