In federal court in Central Islip today, Jeffrey Chartier, a former registered broker who participated in a criminal conspiracy to advertise and manipulate the price of shares of publicly traded companies, was sentenced to 10 years in prison by U.S. District Judge Joanna Seibert. was sentenced. securities fraud collusion, securities fraud, wire fraud collusion, money laundering collusion, and money laundering; The court also ordered Chartier to pay the forfeiture of $1,022,398.89 and his return of $6,083,603.45. Chartier and co-defendant Lawrence Aisen were convicted by a federal jury in March 2020 after a six-week trial.
Breon Peace, U.S. Attorney for the Eastern District of New York, and Michael J. Driscoll, assistant director of the New York branch of the Federal Bureau of Investigation (FBI), announced the verdict.
“Jeffrey Chartier and his allies have pocketed the lifetime savings of hardworking citizens they have sacrificed across the country,” said U.S. Attorney Peace. “Today’s ruling should serve as a reminder to so-called white-collar criminals that this office holds them accountable for their selfish actions and the devastation they wreak upon the lives and families of others. ”
Peace also thanked the Federal Bureau of Investigation’s New York field office for their efforts and dedication to lead the investigation, and thanked the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Agency. I expressed my gratitude. We thank the Criminal Prosecution Assistance Group (FINRA CPAG) for their cooperation and support.
Between 2014 and 2016, Aisen, Chartier, and others who worked in the Melville, New York-based boiler room artificially inflated the stock prices and trading volumes of distressed companies. , the elderly and vulnerable, who are often unsuspecting victims.
Evidence at trial shows Chartier illegally boosting the stock prices of National Waste Management Holdings, Inc., which trades under the ticker symbol NWMH, and CES Synergies, Inc., which trades under the ticker, from approximately 2014 to 2016. Proved that you paid for the boiler room for Symbolizing CESX through manipulative trading, he can also dump his own NWMH and CESX shares to innocent investors through illegal match trading. Both NWMH and his CESX were previously profitable private companies run by individuals seeking retirement. Chartier persuaded them to pay him a large amount of stock to take the company public with the promise of keeping it going into the future. Instead, Chartier hired a boiler room and used heavy-handed sales tactics to fraudulently inflate the stock prices of these companies, then sold off his own shares through matched deals, causing the companies’ stock prices to plummet. As part of its ruling, the court ordered the repatriation of his NWMH and the remaining Chartier shares in his CESX.
Evidence at trial indicates that Isen conspired with unscrupulous investors both in the United States and abroad to sell Hydrocarb Energy Corp., which trades under the ticker symbol HECC, and Intelligent Content Enterprises, Inc., which trades under the ticker symbol HECC. sold a large amount of its stock. The ICEIF symbol on the victim. He did so by, among other things, connecting investors to the boiler room. Negotiate the terms of the arrangement between them. and manage relationships between them. Isen uses lies and high-pressure sales tactics to entice victims by transferring money and inventory that the Boiler Room needs for the campaign. Did. He works with Boiler Room to fill the orders of deceived victims with shares of Isen’s crooked investors. Create fraudulent stock purchase agreements, consulting agreements, and invoices to cover up illegal activity.
The government has calculated that the conspiratorial market manipulation has fraudulently inflated the stock prices of HECC, ICIEF, NWMH, CESX and one other company by more than $147 million. All 16 of his defendants charged in the case were convicted.
Assistant U.S. Attorneys Whitman GS Knapp and Caitlin T. Farrell are in charge of the prosecution. U.S. Assistant U.S. Attorney Tanisha Payne in the Asset Recovery Section of the agency is handling the forfeiture issue in this case.
defendant:
Jeffrey Chartier
Age: 59
Sunny Isles, Florida
Lawrence Eisen
Age: 69
San Diego, California
Docket No. 17-CR-372 (JS)
