Man Gets 1-Year Term in Stock Manipulation Case
A man was sentenced to a year in federal prison and ordered to pay almost $1 million in restitution for conspiring to manipulate the stock price of a company that provided medical testing services in shopping malls, authorities said Tuesday.
David Paletz, 54, formerly of Woodland Hills, was sentenced by U.S. District Judge George H. King.
Others already sentenced are the father and son who served as chairman and president of the E.N. Phillips company. Harold Bernard Phillips, 67, is serving six months in prison and will also serve six months in home detention after his release. His son, Douglas Phillips, 44, is serving a one-year prison term. The men were ordered to pay $831,000 in restitution.
Another accomplice, Stephen Richard Friedman, 54--a former securities broker now living in Palm Springs--is awaiting sentencing, prosecutors said. Two other suspects--Akiva Bar, 48, and Rafael Harary, 50--are fugitives.
The charges against the men trace back to 1990.
E.N. Phillips, based in Woodland Hills, used the name “Testing 1-2-3” when it provided basic medical services--such as blood pressure or cholesterol level checks--at the shopping malls.
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