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Florida Man Sentenced to 20 Years in Prison for $7 Million Stock Manipulation Scam
In a shocking turn of events, Jonathan Curshen, 47, the principal of Red Sea Management and Sentry Global Securities, was sentenced to 20 years in prison for his role in a stock manipulation scheme that defrauded investors in a company called CO2 Technologies.
The scheme, which began in January and February 2007, involved Curshen and his co-defendant, Las Vegas stock promoter Nathan Montgomery, manipulating the stock price of CO2 Tech (ticker CTTD) by engaging in coordinated trades and issuing false and misleading press releases. The press releases claimed that CO2 Tech had a business relationship with Boeing to reduce polluting gases emitted from airplanes, when in fact CO2 Tech never had any business or relationship with Boeing.
Courts found that Montgomery and his co-conspirators fraudulently “pumped” the market price and demand for CO2 Tech stock through these press releases and coordinated trades of shares of CO2 Tech stock. As Montgomery and his conspirators pumped the price of the stock, Curshen and his conspirators facilitated the “dumping” of shares through the trading desk at Red Sea and Sentry Global Securities by selling the shares to the general investing public.
The evidence showed that these shares, which became virtually worthless, were purchased by unsuspecting investors, including investors in the Southern District of Florida. Curshen and his conspirators laundered the proceeds of the stock fraud from accounts in the United States to an account in Canada, all in an effort to conceal and disguise the nature and source of the proceeds.
Curshen was sentenced by U.S. District Judge Richard W. Goldberg in Miami, Florida, to 20 years in prison, three years of supervised release, and ordered to forfeit approximately $7.3 million. Montgomery, 31, is scheduled to be sentenced by Judge Goldberg later today. Curshen and Montgomery were convicted by a jury in January 2012 on all counts.
Other conspirators, including stock promoters Barham and Weidenbaum, were sentenced yesterday to 30 months and 26 months in prison, respectively. The total amount of money lost by unsuspecting investors due to this scam is estimated to be $7 million.
This case serves as a reminder of the importance of vigilance in the financial markets and the severe consequences that can result from engaging in fraudulent activities.
Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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