BROOKLYN, NY – In a shocking turn of events, Cecil Franklin Speight, also known as Frank Speight, the CEO of International Stock Transfer (IST), pleaded guilty to conspiracy to commit mail fraud and securities fraud yesterday. This comes after an investigation revealed that Speight engaged in a conspiracy to steal over $3 million from investors.
According to court filings and facts presented at the plea hearing, Speight stole at least $3.3 million from victim investors and used the proceeds to pay personal expenses, including purchases at Mercedes Benz, Nordstrom, Netflix, and Groupon. Speight faces up to five years’ imprisonment, at least $3.3 million in restitution, and a fine equal to double the investors’ losses.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“Rather than transferring capital to issuers, the defendant used the investors’ funds as his own, including financing his lifestyle in Florida. His victims, from the Eastern District of New York and around the world, were conned into buying bogus securities that were not worth the paper they were printed on. Now, he will be held to account for his crimes,” stated United States Attorney Lynch.
IST was founded by Speight in 2004 as a transfer agent registered with the SEC with offices in Palm Beach, Florida. Speight used “cold callers” and other means to entice victims into investing their money in allegedly high-yield securities. Speight promised the victims a high rate of return if they invested in securities that were purportedly associated with IST.
The government’s case is being prosecuted by Assistant United States Attorney Jack Dennehy. This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes.
Defendant: Cecil Franklin Speight, CEO of International Stock Transfer
Criminal Charges: Conspiracy to commit mail fraud and securities fraud
City and State: Brooklyn, NY
Exact Date: Yesterday
Sentence or Outcome: Up to 5 years’ imprisonment, at least $3.3 million in restitution, and a fine equal to double the investors’ losses
Dollar Amounts: $3.3 million
Related Federal Cases
- Carl R. Ruderman, Securities Fraud, New York 2018 · Florida
- Tibor Klein, Securities Fraud, New York 2010 · Florida
- David Gentile, Securities Fraud, New York 2024 · Florida
- Andrew Caspersen, Securities Fraud & Wire Fraud, New York 2016 · Florida
- Stefan Lumiere, Securities and Wire Fraud, New York 2013 · Florida
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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