Key player in $19M stock fraud scheme gets 3 months
NEW HAVEN, Conn. (AP) — A key player in a stock fraud scheme that cheated about 12,000 investors out of $19 million has been sentenced to three months in prison.
Federal prosecutors in Connecticut say 46-year-old Christian Meissenn’s sentence was based in part on his serious health condition, and he must also serve three years of probation in home confinement.
Authorities say the Suffield resident and others conspired to defraud investors through a stock “pump and dump” scheme that ran from 2009 until 2016.
They induced investors to purchase securities by making false and misleading representations, causing the price of those securities to become falsely inflated. The issuing companies were mostly shell corporations.
After selling their own shares at a profit, the conspirators allowed the price of the securities to fall, leaving investors with worthless stock.