Defrauded stock investors to get back 62%
Thursday, March 11th, 2010
Investors who lost nearly $12 million in a 2003 international stock fraud scheme will be partially reimbursed. WHYY's Aaron Moselle reports.
U.S. Immigration and Customs Enforcement agents in Philadelphia say almost 900 investors, which included more than a hundred in Delaware, New Jersey and Pennsylvania, lost money after they were tricked into buying stock in a fake company.
Federal agents say that more than $7 million was recouped, about 60 percent of all known investments.
Special Agent John Kelleghan says investors were bilked by con men from Switzerland, France and Senegal, who created a fake internet company that issued publicly traded stocks.
Kelleghan: They market it and push it through various avenues and accelerate it and pump it up to where attention of various investors to get their interest to buy it. The more people they get interested in to buy it, the higher the dollar price goes.
Kelleghan says the conspirators sold high making a huge profit.