Shaun Greenwald, Stock Manipulation Scheme, NY 2016

Shaun Greenwald, a 40-year-old Cedarhurst, New York, accountant, pleaded guilty today to orchestrating a sprawling stock manipulation scheme that raked in millions in illegal profits between 2014 and 2016. The confession, delivered before U.S. District Judge John Michael Vazquez in Newark, N.J., exposes a calculated web of fraud, secrecy, and financial deception that exploited dozens of hidden brokerage accounts to rig market prices.

Greenwald admitted to one count of securities fraud conspiracy and one count of tax fraud conspiracy, charges that each carry a maximum penalty of five years in federal prison and a fine of $250,000—or twice the gross gain from the offense. Prosecutors say he didn’t act alone. He conspired with Joseph Taub, 38, of Clifton, New Jersey, and others to manipulate public company stock prices through coordinated trades across a network of so-called ‘straw accounts’—brokerage shells held in the names of family members, shell entities, and unwitting third parties who had no real control over the funds or trades.

The scheme followed a ruthless playbook. The conspirators used ‘Winner Accounts’ to buy large blocks of stock, while ‘Loser Accounts’ placed small, repeated trades to artificially inflate share prices. Once the price surged, they dumped the big holdings for massive gains. The Loser Accounts often lost money, but those losses were considered mere cost of doing business—the winners covered the tab. Taub, who funded most of the accounts, used Greenwald’s accounts to hide in plain sight, with Greenwald signing off on paperwork that falsely claimed ownership and funding.

Greenwald didn’t just lend his name—he became the financial brain of the operation. As Taub’s client, he opened accounts under his own name or controlled entities, then handed over login credentials so Taub and others could execute the trades. In return, Greenwald took a cut of the profits. But his role went deeper: he performed accounting services for the conspiracy, calculating taxes owed on illicit gains. Taxes were paid at the lower rates of the straw account holders—even though they only received a sliver of the profits. Taub kept his massive share of the money off the books entirely, dodging federal tax obligations.

Taub, charged by complaint on December 12, 2016, remains presumed innocent under the law. The allegations against him are still unproven in court. Meanwhile, Greenwald faces sentencing on June 5, 2018, with federal prosecutors Daniel Shapiro, Zach Intrater, Sarah Devlin, and Barbara Ward leading the case for the U.S. Attorney’s Office Economic Crimes and Asset Forfeiture Units in Newark.

The investigation was spearheaded by the FBI under Special Agent in Charge Timothy Gallagher, IRS Criminal Investigation led by Jonathan D. Larsen, and agents from the U.S. Attorney’s Office in New Jersey. The SEC’s New York Regional Office provided critical assistance. Greenwald is represented by defense attorneys Marc Agnifilo Esq. and Joshua Kirshn. The case lays bare how financial professionals can weaponize their expertise to loot the markets—until the feds close in.