Securities Trader Sentenced In Tax Fraud Scheme In Newark

Newark NJ

23 December, 2020

1:24 PM

Description

NEWARK, NJ — A securities trader who pleaded guilty to securities fraud and conspiracy to defraud the United States has been sentenced to serve 18 months behind bars. U.S. Attorney Craig Carpenito, of the District of New Jersey, announced the sentencing on Tuesday, saying the scheme earned some $17 million in illegal profits between 2014 and 2016. The man, 41-year-old Joseph Taub of Clifton, conspired with others to manipulate the securities prices of public companies by coordinating trading in brokerage accounts he secretly controlled, Carpenito said in a news release. In doing so, Taub was able to falsely inflate the market price of securities and induce other market participants to trade in securities while believing there was actual market interest in the securities, according to the release. Taub also admitted to defrauding the U.S. by hiding the identities of those who controlled straw accounts from the IRS and brokerage firms. Doing this led to accounts being taxed at a lower rate, allowing Taub to avoid $394,424 in taxes, the U.S. attorney said. In addition to serving 18 months in prison, Taub must also forfeit $17.1 million and pay full restitution to the IRS, a judge ruled. In a settlement with the Department of Justice, he must also forfeit all assets subject to a pending forfeiture complaint and work with the DOJ in transferring, managing and disposing of relevant assets.