Securities Fraud Conviction in New York
Sometimes even a great cross-examination of a fraudster-snitch can't save your client.
James Margulies was convicted yesterday in a $100 million securities fraud case. Manhattan DA Cy Vance promptly showed up with a statement (will it help rehabilitate sagging image?) [More...]:
The defendant’s pump-and-dump scheme artificially inflated stock prices before he sold off the shares, leaving honest investors holding worthless stock,” Cyrus R. Vance Jr., the Manhattan district attorney, said in a statement after a jury convicted Mr. Margulies on 30 criminal counts. Mr. Vance noted that the victims included a teachers’ pension fund in Ohio and a Methodist church.
As for the cooperator, John D. Mazzuto, his deal is now in jeopardy because he picked up a DUI which violates his agreement. When he pleaded guilty in January, the fraud was only $60 million. How did it get to $100 million?
Vance's office agreed to a 1 to 3 year sentence for Mazzuto. Margulies is now facing 25 years. Freedom is a commodity far more precious than money. The incentive to lie -- and tell the truth as the Government sees it -- is enormous.
|< NY Times: Obama and Repubs Close to Agreement on Budget Cuts | Thursday Night Open Thread >|