Feds: 9 sold worthless stocks in massive $140 million scheme
A crew of con men sold worthless penny stocks to people around the globe at pumped-up prices, then victimized the investors again by setting up a fake law firm that charged them to try to get their money back, federal authorities in New York said Tuesday.
The international scheme generated more than $140 million, making it one of the largest penny stock fraud schemes in history, U.S. Attorney Loretta Lynch said at a news conference announcing an indictment charging nine defendants.
FBI agents arrested six of the defendants Tuesday in New York, Arizona, New Jersey, Florida and California. A seventh was being held in Canada and two were at large.