Penny-Stock Tycoon Convicted of Fraud

Former penny-stock tycoon Robert E. Brennan was convicted of bankruptcy fraud after a monthlong trial in Trenton, N.J., and could face six to 10 years in federal prison. Brennan, 57, was convicted on seven of 13 counts. A hearing is set for today to determine whether he will remain free on bail pending sentencing. Brennan was accused of hiding millions of dollars from creditors in his 1995 bankruptcy filing by manipulating ill-gotten gains in an offshore trust and concealing $525,000 in chips from the Mirage Resorts casino in Las Vegas. Brennan became known in the 1980s through TV commercials for his former flagship brokerage, First Jersey Securities Inc., urging viewers to “come grow with us.” He filed for bankruptcy protection in 1995, just before he was due to pay millions to compensate First Jersey investors. That judgment, won in a fraud case pressed by the Securities and Exchange Commission, is now more than $78 million.