A former stockbroker has been convicted of participating in a bribery scheme to manipulate the market for a publicly traded company.
Christopher Kline, 49, a resident of York, Pennsylvania, pled guilty in Manhattan federal court on September 10, 2013 to participating in a conspiracy to commit securities fraud and commercial bribery, and one count of securities fraud.
Kline acted as the middleman between his client, William Curtis, and a confidential informant working with the Federal Bureau of Investigation. Curtis agreed to pay secret cash bribes to the informant in exchange for convincing investors to purchase the common stock of G&S Minerals, Inc.
One purpose of the bribes was for Curtis to sell his G&S stock, which he did through accounts managed by Kline. Kline collected a 10% kickback from the informant for his role in the scheme.
The charges against Kline carry a maximum combined penalty of 25 years in prison and a maximum fine of $5,000,000. Kline has agreed to forfeiture of the $2,000 in proceeds he obtained for his commission of the offenses.
Curtis, 50, a resident of Naperville, Illinois, pled guilty in October 2009 to one count of participating in a conspiracy to commit securities fraud and commercial bribery, and one count of securities fraud. He was sentenced to three years of probation and ordered to pay a $200 special assessment.
The charges against Kline are the result of a wide-ranging FBI undercover investigation of related stockbroker bribery schemes involving US-based, Canadian-based and Costa Rican-based stock promoters and stockholders.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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