A now-shuttered New Jersey delicatessen has become infamous as the “$100 Million Deli” after it was allegedly used as part of a scheme to manipulate stock prices and to commit securities fraud.
A Tangled Web of Stock Transactions
Frankly, this one's complicated, but here is the gist of it: shares in a corporation that owned the deli (which reportedly had annual revenue of about $40,000) were allegedly sold by the three defendants to a small number of associated individuals and entities. Next, the three defendants allegedly: took control of the corporation and transferred shares to a number of other entities and family members; registered the corporation's shares on the open market; used the registration to begin trading the corporation's shares on a more desirable exchange; and began to manipulate the company's stock price through allegedly artificial transactions. In sum, the government alleges that the defendants inflated the stock price of the corporation by 939%.
The same three defendants are also accused by the government of taking control of a failing publicly-traded company and manipulating its stock so as to inflate its price by about 19,900%.
The Defendants Face Serious Federal Charges
The defendants are charged with a number of federal crimes, including two counts of Conspiracy (to commit securities fraud and to manipulate securities prices), Securities Fraud, Manipulation of Securities Prices, Wire Fraud, and Money Laundering. They face up to 20 years in prison and fines of up to $5 million.
This case serves as a reminder that the financial markets are heavily regulated and that, particularly where publicly traded companies are concerned, there is almost always somebody out there who is paying attention to stock prices. Whether they're looking for value or they're concerned about fraud, someone is likely to take notice if stock prices don't make sense.
You Need the Advice of an Experienced Attorney
If you are being investigated by authorities for stock-related issues or have been charged with any of the counts these three defendants are facing, you need the help of attorney Joseph D. Lento, who has substantial experience representing defendants in white-collar criminal cases in federal court. You don't want to take on the feds alone, particularly where the charges are complex (as in the $100 Million Deli case) and deal with complicated allegations that typically include securities fraud, insider trading, Ponzi schemes, embezzlement, and tax evasion, among others. You need the advice and assistance of an experienced and knowledgeable attorney who can help you understand what you're charged with and who can speak confidently and aggressively with the prosecutors assigned to your case.
Attorney Joseph D. Lento and the Lento Law Firm Are Here to Help
No matter how serious the charges, remember that you have rights; and one of those rights is to be represented by attorneys such as Joseph D. Lento and his team at the Lento Law Firm, who have experience with white-collar criminal investigations and trials, and can help you mount a strong defense and will be your advocate both in court and when dealing with federal prosecutors. And in these kinds of heavily-investigated cases, it's doubly important that before you speak with any government investigators or attorneys who may be asking to meet with you, you contact attorney Joseph D. Lento and the Lento Law Firm at (888) 535-3686 or through our contact form to learn more about how we can help.