Former registered broker Louis Petrossi was found guilty by a federal jury in Brooklyn today for masterminding a $131 million fraudulent stock promotion and market manipulation scheme targeting ForceField Energy Inc. (FNRG) on the NASDAQ exchange.
The defendant, who operated under the guise of the Wealth Research Institute, lured investors into buying ForceField stock by offering a ten percent kickback commission. Petrossi and his cohorts also engaged in illegal trading tactics to artificially inflate the stock’s value. This conviction brings the total number of defendants held accountable in this case to nine.
Petrossi is now facing a maximum sentence of 20 years’ imprisonment after being sentenced by United States District Judge Brian M. Cogan.
Acting United States Attorney Bridget M. Rohde and FBI Assistant Director-in-Charge William F. Sweeney, Jr. announced the verdict, acknowledging the hard work and dedication of the FBI in leading the investigation. Rohde also expressed gratitude to the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority, Inc., Criminal Prosecution Assistance Group (FINRA CPAG) for their collaborative efforts.
The prosecution was handled by Assistant United States Attorneys Mark E. Bini and Lauren H. Elbert from the Office’s Business and Securities Fraud Section.
Defendant Louis Petrossi, aged 76, hails from Reno, Nevada, and is currently awaiting sentencing in Case No. 16-CR-234 (BMC) before the Eastern District of New York.
Related Federal Cases
- Louis F. Petrossi Convicted in $1.8M Investor Fraud Scheme · Pennsylvania
- Phan and Tran Sentenced in $330,000 Cell Phone Fraud Scheme · New Hampshire
- CEO Axius Inc. Bribe Scheme Mastermind Indicted · Nevada
- Bribery Scheme Exposed: Axius CEO and Finance Professional Indicted · Nevada
- Bribery Scheme Unravels at CalPERS, Nevada Man Indicted · Nevada
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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