New York Stock Swindle: Broker Gets 18 Months for $131 Million Scheme
BROOKLYN, NY – Gerald Cocuzzo, a registered broker, was sentenced to 18 months in prison for his role in a massive market manipulation scheme that cost investors $131 million.
Cocuzzo, 39, of Delray Beach, Florida, pleaded guilty to securities fraud for his part in the scheme to defraud investors in ForceField Energy Inc., a publicly traded company listed on the NASDAQ.
Between 2009 and 2015, Cocuzzo and his co-conspirators engaged in a scheme to control the price and volume of ForceField stock by using nominees, orchestrating trading, and concealing secret payments to stock promoters and broker-dealers.
Cocuzzo received secret cash kickbacks from a ForceField executive in exchange for purchasing ForceField stock in his clients’ brokerage accounts, but failed to disclose these payments to his clients.
The scheme was carried out through the use of prepaid, disposable cellular telephones and encrypted messaging applications to conceal their participation.
The government’s case is being handled by the Office’s Business and Securities Fraud Section, with Assistant United States Attorneys Mark E. Bini and Lauren H. Elbert in charge of the prosecution.
Cocuzzo’s sentencing is the third in connection with the fraud in ForceField securities, with five other defendants awaiting sentencing.
Mandatory Facts:
- Defendant: Gerald Cocuzzo
- Criminal Charge: Securities Fraud
- City and State: Brooklyn, NY
- Exact Date: Not specified
- Sentence: 18 months in prison
- Loss: Approximately $131 million
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
