Kenneth Marsh, the “ringleader” behind the Gryphon Holdings Inc. boiler-room operation on New York’s Staten Island, was sentenced to eight years in prison for his role in defrauding almost 5,500 people out of $20 million.
Marsh, 44, the last of the 18 Gryphon defendants to learn his prison term, was sentenced today by U.S. District Judge Jack Weinstein in Brooklyn, New York. He pleaded guilty in April to one count of securities fraud, admitting he misled investors into paying for phony stock tips.
“The victims were heard and they told heart-wrenching stories,” Weinstein said.
Gryphon charged clients as little as $99 and as much as $250,000 for access to its investment recommendations, according to a related civil lawsuit by the U.S. Securities and Exchange Commission. The other 17 defendants in the scheme, including members of its sales force, all pleaded guilty and got sentences ranging from three to 25 months. Marsh personally made $1.9 million through Gryphon, according to the SEC complaint.
Read all about it at http://www.bloomberg.com/news/2011-09-20/gryphon-s-kenneth-marsh-gets-eight-years-in-prison-for-stock-tip-fraud.html
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