Joseph Taub, 38, of Clifton, New Jersey, is back in federal crosshairs — this time with a 13-count indictment charging him with orchestrating a massive market manipulation scheme that raked in tens of millions of dollars in illicit profits between 2014 and 2016. The indictment, unsealed today in Newark, adds fuel to a years-long federal probe into a shadowy web of fraud, deception, and tax evasion that turned legitimate markets into a rigged casino.
Taub, first charged by complaint in 2016, now faces counts of securities fraud conspiracy, market manipulation conspiracy, multiple substantive securities and market manipulation charges, and tax fraud conspiracy. The scheme relied on dozens of brokerage accounts secretly controlled by Taub and his co-conspirators — accounts held in the names of family members, straw holders, and shell entities. These weren’t investor accounts; they were weapons in a calculated effort to fake market momentum and sucker in real traders.
According to court documents, the scam ran like clockwork. A ‘Winner Account’ — funded and directed by Taub — would amass a massive position in a targeted stock. Simultaneously, a ‘Loser Account’ would flood the market with small, rapid-fire trades to inflate the stock’s price. That artificial spike triggered real investor interest. Then, the kill switch: dump the Winner Account shares at the peak, cash out, and vanish. The Loser Accounts might bleed money, but the winnings dwarfed the losses — all while hiding behind borrowed names.
But the fraud didn’t stop at market manipulation. Taub allegedly conspired with Shaun Greenwald, 40, of Cedarhurst, New York, an accountant, to launder the proceeds and dodge taxes. By disguising Taub as the true beneficiary, the conspirators ensured profits were taxed at the lower rates of the straw account holders — not the steep brackets Taub and his crew should’ve faced. The IRS was left holding the bag while Taub funneled millions into brokerage and bank accounts, and even invested in companies under his control.
The fallout is tightening. Greenwald pleaded guilty on February 21, 2018, and awaits sentencing. Taub, meanwhile, is set to appear before U.S. District Judge John Michael Vazquez for arraignment. If convicted, he faces up to five years on each conspiracy count and up to 20 years on each substantive securities or market manipulation charge. Every count carries a fine of $250,000 or double the gross gain — a financial noose.
The U.S. Attorney’s Office has also filed a civil forfeiture action targeting every asset tied to the scam: the brokerage accounts used in the trades, bank accounts seeded with dirty money, and Taub’s interests in businesses funded by the scheme’s proceeds. These ‘in rem’ proceedings treat the property itself as guilty — because in this case, the money, the accounts, and the investments are all bloodstained by fraud.
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Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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