2 N.Y. Brokers Plead Guilty to Fraud
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Two New York stockbrokers, accused with 11 others of swindling clients out of more than $75 million, pleaded guilty Monday to lying to investors, manipulating markets and making unauthorized trades.
The two have agreed to cooperate with prosecutors.
Matthew Hirsch and Garvey Fox had worked for the now-defunct investment firm of A. R. Baron & Co. The high-living stockbrokers used some of their clients’ life savings on expensive dinners, strip-club lap dances and luxury cars, prosecutors said.
They were charged last month in a 228-page, 174-count indictment in Manhattan Supreme Court.
Both defendants pleaded to one count of enterprise corruption. They each had faced up to 25 years in prison on that count alone, but because they agreed to cooperate with prosecutors, the sentence is expected to be from one to three years, prosecutors said.
Among the stocks the two men were accused of manipulating were Advanced Mammography Systems, Symbollon, Aqua Care Systems and Laser Video Network.
The 11 other defendants include Andrew Bressman, former Baron president, and Roman Okin, described as the company’s No. 2 man.
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