David Blech, Securities Fraud, New York 2012
A former investor has been sentenced to four years in prison for engaging in market manipulation schemes involving two different stocks, according to a recent verdict in Manhattan federal court.
David Blech, 57, of New York, New York, was sentenced to four years in prison for securities fraud arising from schemes to manipulate the market for securities of Pluristem Therapeutics, Inc. and Intellect Neurosciences, Inc. in 2007 and 2008.
The court found that Blech manipulated the markets for these securities by selling a portion of his holdings in those companies through deceptive and illegal means calculated to hide his selling activity from the market and minimize the downward pressure that his sales would otherwise have had on the value of the Pluristem and Intellect stock that he continued to hold.
According to the information and statements made during Blech's guilty plea proceeding, between January 2007 and May 2007, Blech acquired significant holdings of Pluristem stock, which was traded on the OTC Bulletin Board, in connection with a private placement offering by Pluristem.
Blech pled guilty to two counts of securities fraud in May 2012 before U.S. Magistrate Judge Frank Maas. He was sentenced today by U.S. District Judge Colleen McMahon.
In addition to the prison term, Judge McMahon sentenced Blech to three years of supervised release. Blech was also ordered to pay forfeiture in the amount of $1,338,000 and a $200 special assessment fee.
The verdict is a significant win for the government in its efforts to hold investors accountable for their actions.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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