LAS VEGAS, Nev. – A Pahrump man was handed a six-year federal prison sentence today for his role in a sprawling penny stock fraud that bilked investors out of over $35 million. The sentence concludes a case that exposed a systematic scheme to manipulate the market using worthless shell companies.
Jeffrey Turino, 60, was sentenced by U.S. District Judge Jennifer Dorsey after pleading guilty last August to conspiracy to commit securities fraud. The indictment charged Turino with both conspiracy and the actual fraud, detailing a scheme that stretched from approximately 1997 until March 2010. Turino and his co-conspirators targeted unsuspecting investors with billions of unregistered shares in companies that existed largely on paper.
The fraud centered around a network of corporate shells controlled by Turino and his associates, including World Wide Cannery and Distribution, Global Diamond Exchange, Inc., Equitable Mining Corporation, ODMA Oil and Gas, Inc., and Grand Entertainment and Music, Inc. These entities, according to court documents, were deliberately portrayed as active businesses involved in legitimate trade – specifically, the importation and sale of products. In reality, the plea agreement revealed, these companies were “hollow shells” with no substantial business activity, producing no goods, services, or profits.
The scheme relied on deceptive press releases and manipulative practices to artificially inflate the perceived value of the penny stocks. While individual shares often traded for less than a cent, the sheer volume – billions of shares fraudulently issued – generated over $35 million in illicit proceeds. This money was then divided amongst Turino and the other individuals involved in the conspiracy, leaving investors holding worthless stock.
Judge Dorsey didn’t stop at incarceration. In addition to the 72-month prison term, Turino was sentenced to five years of supervised release following his imprisonment. Crucially, the judge also ordered Turino to pay $35 million in restitution to the victims of the fraud, a significant attempt to recoup the stolen funds. The financial recovery, however, remains uncertain given the length of time the scheme operated and the potential dispersal of assets.
The investigation was a joint effort by the FBI and IRS-Criminal Investigation, with Assistant U.S. Attorney Kathryn Newman leading the prosecution. The case serves as a stark warning about the dangers of penny stock schemes and the relentless pursuit of financial criminals by federal law enforcement. The Grimy Times will continue to follow developments in this case and report on the fates of any remaining co-conspirators.
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Key Facts
- State: Nevada
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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