Home Civil Law “Heartless” Broker Preyed Upon Largely Elderly Investors With Sham Stocks

“Heartless” Broker Preyed Upon Largely Elderly Investors With Sham Stocks

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Audrey Strauss, the Acting United States Attorney for the Southern District of New York, introduced at this time that VLADIMIR ZISKIND was sentenced at this time in Manhattan federal courtroom to 28 months in jail for collaborating in a scheme to make use of false statements to advertise and promote nugatory inventory in numerous corporations.  ZISKIND pled responsible on October 9, 2019, to 1 rely of securities fraud and one rely of securities fraud conspiracy earlier than U.S. District Judge Vernon S. Broderick, who additionally imposed at this time’s sentence.

             Acting Manhattan U.S. Attorney Audrey Strauss stated:  “Vladimir Ziskind heartlessly preyed on innocent investors – many of them elderly – who believed they were investing in a promising IPO or other time-sensitive lucrative investment, when in fact they were being fleeced by Ziskind and his co-conspirators.  As this prosecution and today’s sentence reflect, this kind of predatory fraud will not be tolerated.”

             According to the allegations contained within the Complaint, the Indictment, and statements made in related courtroom filings and proceedings:[1]

             For a number of years, ZISKIND and his co-defendants operated a fraudulent scheme wherein a salesman named “Mike Palmer” would call aged individuals on the telephone and provide them what he claimed was a time-sensitive alternative to purchase inventory in sure corporations.  In truth, there was no “Mike Palmer,” and the salesperson was really ZISKIND or co-defendant Kevin Weinzoff, who have been taking turns utilizing the faux alias.  The purported time-sensitive funding alternative was additionally fabricated by the defendants, as the businesses wherein they solicited investments have been really corporations under their management.  In one intercepted telephone call dialog, ZISKIND described to co-defendant Keith Orlean, the chief government officer of the corporate, his technique for a profitable investor gross sales pitch as: “You ram it down their fucking throat.”  In one other intercepted call between ZISKIND and Orlean, upon discovering {that a} explicit sufferer investor died, ZISKIND remarked: “I knew I should have pulled the last $10,000 out of him.” 

The most up-to-date model of the defendants’ phony gross sales pitch included false representations about an impending preliminary public providing, or “IPO,” for his or her firm, Digital Donations Technologies, Inc.  For instance, in April 2018, ZISKIND assured a sufferer investor that “our company is doing great,” that the corporate had a proposal for an IPO valued at roughly $300 million, and that Orlean was contemplating a personal sale of the corporate for greater than $1.5 billion.  In reality, nonetheless, the defendants knew that the corporate had little or no precise industrial worth and that no such IPO or sale was going down. 

             The FBI estimates that since April 2014, the defendants have satisfied greater than roughly 50 aged individuals to buy inventory in corporations managed by a number of of  the defendants based mostly on false representations.  During the scheme, the defendants solicited greater than $2 million in inventory purchases from victims.

In addition to a jail time period, ZISKIND, 52, of Brooklyn, New York, was sentenced to three years of supervised launch, and ordered to pay a forfeiture cash judgment within the quantity of $732, 018.

Keith Orlean was beforehand sentenced to a jail time period of 32 months.  Kevin Weinzoff, who beforehand pled responsible, awaits sentencing.

             Ms. Strauss praised the excellent work of the FBI.

             The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force.  Assistant U.S. Attorneys Robert L. Boone and Andrew Thomas are in command of the case.

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