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Oct. 26 (Bloomberg) -- Stock trader Scott Kupersmith and five alleged shell companies were charged with taking part in $60 million in allegedly illegal stock trades.
Kupersmith, 46, used assumed identities to create the companies, defrauding at least six broker-dealers of more than $830,000, Manhattan District Attorney Cyrus Vance Jr. said today in a statement. Kupersmith told the dealers the companies were well-financed and had relationships with reputable banks, when in fact they had no such relationships, Vance said.
“The illegal scheme he is accused of was little more than a confidence game using offshore banks, shell companies and fraud, and ultimately cost legitimate broker-dealers hundreds of thousands of dollars,” Vance said.
The district attorney’s investigation, coinciding with probes by the U.S. Attorney’s Office in New Jersey and the U.S. Securities and Exchange Commission, covered trades from 2008 to 2010 through New York-based Antibe Arbitrage Group Inc. and Northbrae Capital Group Inc. and New Jersey-based Atlantic Southern Capital Group Inc., Fullerton Capital Group Inc. and Oxford Smith Advisors LLC, authorities said.
Kupersmith faces charges of first- and second-degree grand larceny, scheming to defraud and violating general business law.
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