10 Stockbrokers Face Racketeering Indictment
Ten stockbrokers at a now-defunct securities firm were accused Wednesday in a racketeering indictment of defrauding hundreds of customers out of millions of dollars, authorities said.
The brokers, who once worked for LCP Capital Corp. in Manhattan, were paid millions of dollars in cash bribes by stock promoters to pump up the prices of 14 stocks, Manhattan Dist. Atty. Robert Morgenthau said. The brokers then induced customers to buy the stocks with high-pressure sales tactics and fraudulent recommendations, he said.
Total losses suffered by investors are unknown, but more than $50 million worth of stocks was sold to unsuspecting customers, Morgenthau said.
From Reuters
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