David Levy, Pump and Dump Stock Fraud, New York 2014
David Levy, a 61-year-old resident of Fort Lauderdale, Florida, was sentenced to nine years in prison for orchestrating 'pump and dump' stock fraud schemes that defrauded multiple victims of millions of dollars.
Manhattan U.S. Attorney Preet Bharara announced that David Levy was sentenced to nine years in prison on February 5, 2014 in Manhattan federal court by U.S. District Judge Paul A. Crotty.
According to the evidence introduced at trial, David Levy and his wife, Donna Levy, offered to help start-up companies obtain financing, take the start-up companies public, and coordinate marketing and investor relations for the companies, in exchange for company shares.
Once they had helped the companies go public, Donna Levy put out press releases on behalf of the target companies, and she worked with her husband to secretly fund and distribute misleading third-party 'buy' recommendations concerning the targeted companies.
The 'pump and dump' scheme, which generated demand for stock in the targeted companies and caused the price of the stocks to rise, defrauded multiple victims of millions of dollars.
In addition to the prison sentence, Judge Crotty sentenced David Levy to three years of supervised release and ordered him to pay a $500 special assessment fee.
The case originated from the schemes that David Levy and his wife orchestrated, which employed the Internet and social networking sites, among other tools, to manipulate the price of penny stocks.
The schemes also included an international money laundering scheme, in which David Levy was convicted of conspiring to conceal more than $2.3 million in proceeds of the fraudulent schemes in Panamanian shell company bank accounts.
The relevant plea dates and, where applicable, the sentences imposed are set forth in the attached chart.
In addition, David Levy was preliminarily ordered to forfeit $12 million, his home in Florida, certain luxury vehicles, and certain bank accounts.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →