Christopher Cervino, Securities Fraud, New York 2023

Cervino Sentenced to Prison for Securities Fraud Scheme

Securities broker CHRISTOPHER CERVINO, a/k/a “Smitty,”, 45, has been sentenced to one year and one day in prison, and investment adviser SHEIK F. KHAN, a/k/a “Abida Khan,”, 54, has been sentenced to 53 months in prison for their roles in a securities fraud scheme involving the shares of a publicly traded company called VGTel, Inc. (“VGTL”).

The scheme, which was conceived and led by Edward Durante, a recidivist securities fraud defendant, involved the control and manipulation of the public stock of VGTL to artificially inflate the stock price and trading volume.

Cervino and Khan conspired with Durante and others to control and manipulate the public stock of VGTL, resulting in the loss of millions of dollars for investors. Cervino purchased over $3.5 million of VGTL shares in client accounts controlled by Khan and/or Durante, which were ultimately worthless.

Cervino was sentenced to three years of supervised release and ordered to forfeit $35,000. Khan was sentenced to three years of supervised release and ordered to forfeit $290,787. Restitution for both defendants will be determined at a later date.

Manhattan U.S. Attorney Geoffrey S. Berman stated, “Securities broker Christopher Cervino and investment adviser Sheik Khan created a massive web of lies to defraud investors of millions of dollars. They manipulated the market, and their clients’ trust, to ensure they made money. Thankfully their days of deceptive trading and investing are over, and they will spend time in prison for their crimes.”

The case is being prosecuted by the United States Attorney’s Office for the Southern District of New York. The investigation was conducted by the Federal Bureau of Investigation.

MANDATORY FACTS: Defendant: CHRISTOPHER CERVINO, SHEIK F. KHAN; Criminal charges: Securities fraud; City and state: New York; Date: Not specified; Sentence: One year and one day in prison, 53 months in prison; Dollar amounts: $35,000, $290,787.

Source: https://www.justice.gov/usao-sdny/pr/investment-adviser-and-broker-sentenced-securities-fraud-scheme