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Officials: Broker took bribe in securities fraud scheme

It's a 10-hour, 700-mile drive from Lexington to Franklin Lakes, New Jersey. That's the home of a broker recently arrested by federal authorities for securities fraud. The 43-year-old man was taken into custody on charges that he accepted a $35,000 bribe to trade stock in VGTel Inc. at inflated prices.

According to a U.S. Attorney, the man arrested was bribed by someone who secretly controlled VGTel Inc. stock and manipulated its price as part of a scheme in which he defrauded a minimum of 100 investors out of more than $15 million.

The man just arrested faces a litany of serious charges, including securities fraud, wire fraud, conspiracy and perjury. He was arrested in his upscale home, officials said. The property has a value of more than $1.35 million.

A total of four people have been busted in the case, according to a newspaper account. Two of them have already agreed to plead guilty and cooperate with prosecutors. That can in many cases result in prison time for other conspirators. While those people who have lost their investments are likely pleased by the news, the reality is that the arrests don't put investors’ hard-earned money back in their pockets.

That process can be a difficult one best handled by attorneys with a track record of success in similar matters. Broker misconduct can cost you your life's savings, but skilled lawyers can help you fight to get your assets back whether you are in New Jersey or the Eastwood Subdivision in Lakewood.

The skilled attorneys of Mihalek Law are available to discuss with you your options. Please see our Broker Misconduct page for more information.

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