A former stockbroker who was convicted of conspiring to defraud elderly investors has been sentenced to federal prison, InsuranceNewsNet reports.
69-year-old Lawrence Isen, who prosecutors said participated in a scheme to promote and manipulate the price of shares in publicly traded companies, was sentenced to five years behind bars by a federal judge on Long Island recently.
Isen was found guilty in March 2020 of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, money laundering conspiracy, and money laundering.
According to the Department of Justice, Isen worked with others in a “boiler room” based in Melville, Long Island to artificially inflate the price and trading volume of stock in struggling companies, including Hydrocarb Energy Corp. and Intelligent Content Enterprises, Inc. They then dumped large volumes of shares in the companies on unsuspecting victims who were often elderly and vulnerable.
Prosecutors said Isen connected the investors with the boiler room and assisted in illegal cold call campaigns that used lies and high-pressure sales tactics to lure victims. Isen had been barred from acting as a broker in 1996 and was later convicted of wire fraud conspiracy and obstruction of justice in 2000.
“Lawrence Isen and his co-conspirators used their skills to steal precious savings from elderly, hard-working people all over the country,” said Breon Peace, United States Attorney for the Eastern District of New York. “Today’s sentence should serve as yet another reminder to fraudsters who prey on the vulnerable that this Office will hold them accountable for the damage they cause to the security and well-being of so many.”
The government said the conspiracy’s manipulation fraudulently inflated the stock price of Hydrocarb, Intelligent Content, and three other companies by more than $147 million. Along with the prison sentence, Isen was ordered by United States District Judge Joanna Seybert to pay over $8 million in restitution and over $700,000 in forfeiture.
The attorneys at Lewitas Hyman have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. We bring a unique level of knowledge and experience when representing the rights of investors, including resolving cases through arbitration and litigation when necessary. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Lewitas Hyman at (888) 655-6002 or through our online contact form for a no-cost evaluation of your matter.