Swiss Lawyer Pleads Guilty to Participating in Global Pump-and-Dump Scheme
BOSTON, MA – In a shocking turn of events, Matthew Ledvina, a 46-year-old Swiss lawyer, pleaded guilty yesterday in federal court in Boston to participating in an international pump-and-dump scheme.
According to court documents, Ledvina assisted his co-conspirators in creating nominee entities that were used to hold shares in Environmental Packaging Technologies Inc. (EPTI), a publicly-traded company. These nominee entities allowed the true owners of the shares to mask their identities and secretly sell large quantities of EPTI shares, even as they and others orchestrated promotional campaigns and manipulative efforts to artificially inflate the price and trading volume of those shares.
The government previously charged Roger Knox, the operator of Silverton, a Switzerland-based asset management firm, with helping to facilitate the EPTI pump-and-dump and other market manipulation schemes. During the pump-and-dump, Silverton sold approximately $1.5 million worth of EPTI stock before trading was halted by the Securities and Exchange Commission.
Matthew Ledvina pleaded guilty to one count of conspiracy to commit securities fraud and is scheduled to be sentenced on April 25, 2019. He faces a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss.
The case was announced by United States Attorney Andrew E. Lelling and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. Assistant U.S. Attorney Eric Rosen of Lelling’s Securities and Financial Fraud Unit is prosecuting the case.
Matthew Ledvina’s guilty plea marks a significant victory for the government in its efforts to combat market manipulation and securities fraud. The case serves as a reminder that those who engage in such activities will be held accountable for their actions.
Key Facts
- State: Massachusetts
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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