Florida Man Admits to Role in Multi-State Securities Scheme
CLEVELAND – Charles Vaccaro, 68, of Sunny Isles Beach, Florida, pleaded guilty to his role in a scheme to manipulate the stock prices of publicly traded "penny stock" companies based in Florida, Colorado, and Wyoming.
The scheme, which lasted from approximately January 2014 to July 2019, involved the defendants acquiring small publicly-traded companies, issuing millions of shares to themselves and to friends, relatives, and other nominees at little or no cost, and then artificially controlling the price and volume of shares through a number of tactics.
Vaccaro pleaded guilty to Conspiracy to Commit Securities Fraud on June 24, according to court documents and evidence presented in court. The defendants used promotional media efforts to generate public interest and increase the price and trading volumes in the stock, and they coordinated the sale of large blocks of shares to coincide with press releases and promotions.
The defendants also provided false and misleading information to attorneys and brokers to conceal their true relationship to the companies, which allowed them to deposit and sell stock they would not otherwise have been able to sell.
As a result of the scheme, investors lost more than $26 million. The defendants used the profits from their scheme to enrich themselves and fund luxurious lifestyles.
Among the items seized during the investigation, and later ordered forfeited, were:
$236,131.05 from a bank account
2016 Range Rover vehicle, purchased for $90,327.79
2018 Rolls Royce Dawn vehicle, purchased for $376,660.94
2019 Porsche 911 vehicle, purchased for $164,481.14
2018 Tesla Model S 100D vehicle, purchased for $116,919.83
2001 Azimut 70’ yacht, purchased for $265,925
AB JET 330 dinghy, purchased for $28,670.00.
Vaccaro is awaiting sentencing, and each defendant’s sentence is determined by the Court after a review of factors unique to the case, including prior criminal record, if any, role in the offense, and characteristics of the offense.
Berlly, another defendant, was sentenced to 18 months of probation, and the other defendants have also pleaded guilty to various charges related to the scheme.
This case serves as a reminder of the importance of vigilance and caution when investing in the stock market, and the devastating consequences that can result from securities fraud.
Key Facts
- State: Ohio
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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