Joseph Taub pleaded guilty to $17M market manipulation scheme

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Joseph Taub, New Jersey-based securities trader, pleaded guilty today to orchestrating a massive, long-standing market manipulation scheme. He also admitted to tax fraud that netted more than $17 million in illegal profits, U.S. Attorney Craig Carpenito announced.

Taub, 41, of Clifton, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to counts four and five of a superseding indictment. He admitted to securities fraud and conspiracy to defraud the United States. Sentencing is scheduled for December 1, 2020.

Sean Greenwald pleaded guilty to his role in the scheme on Feb. 21, 2018 and awaits sentencing.

According to court documents, the conspiracy lasted from 2014 to 2016. Taub and others conspired to manipulate the securities prices of numerous public companies.

Taub coordinated trading in dozens of brokerage accounts which he secretly controlled and used “straw accounts” that were held in other names to conduct much of his trading. Taub funded many of these straw accounts and used the straw account holders to conceal the scheme from regulators and law enforcement.