Jeffrey Turino, Securities Fraud, Nevada 2016

Penny Stock Scammers Strike Again: $35 Million Lost in Nevada

A Pahrump man has been sentenced to 72 months in prison for his role in a massive penny stock fraud scheme that left investors with losses of over $35 million.

Jeffrey Turino, 60, of Pahrump, was charged with conspiracy to commit securities fraud and securities fraud in connection with the scheme.

According to the indictment, Turino and his conspirators began their operation in around 1997 and continued until 2010. They issued, offered, and sold stock from corporate shells they controlled, including World Wide Cannery and Distribution, Global Diamond Exchange, Inc., Equitable Mining Corporation, ODMA Oil and Gas, Inc., and Grand Entertainment and Music, Inc.

Turino and his co-conspirators engaged in deceptive practices, issuing false press releases to make the companies appear active. However, in reality, the companies were mere shells with no substantial business activities.

As a result of their scheme, investors were induced to purchase billions of unregistered shares of stock. Although the stocks typically traded for less than one cent per share, they yielded proceeds of over $35 million, which was divided among Turino and his co-conspirators.

U.S. District Judge Jennifer Dorsey sentenced Turino to 72 months in prison, five years of supervised release, and ordered him to pay $35 million in restitution.

The case was investigated by the FBI and IRS-Criminal Investigation, and prosecuted by Assistant U.S. Attorney Kathryn Newman.

Source: https://www.justice.gov/usao-nv/pr/pahrump-man-sentenced-six-years-35-million-penny-stock-fraud-scheme