Contact Us
Clarkstown Daily Voice serves Bardonia, Congers, Nanuet, New City, Upper Nyack, Valley Cottage & West Nyack
Return to your home site

Menu

Clarkstown Daily Voice serves Bardonia, Congers, Nanuet, New City, Upper Nyack, Valley Cottage & West Nyack

Nearby Towns

  • North Rockland
    serves Garnerville, Grassy Point, Stony Point, Thiells, Tomkins Cove, Village of Haverstraw & West Haverstraw in Haverstraw Town
  • Ramapo
    serves Airmont, Chestnut Ridge, Hillburn, Hillcrest, Kaser, Monsey, Montebello, Mount Ivy, New Hempstead, New Square, Pomona, Sloatsburg, Spring Valley, Suffern, Tallman, Viola & Wesley Hills
  • Orangetown
    serves Blauvelt, Grand View-on-Hudson, Orangeburg, Palisades, Pearl River, Piermont, South Nyack, Sparkill & Tappan
Breaking News: Suspects In $1.9K Theft At Rockland Store Still At Large
news

Westchester Native Indicted In $17M Pump-And-Dump Scheme

Greg Gentile
Greg Gentile Photo Credit: LinkedIn

A Putnam Valley man has been charged by the Securities and Exchange Commission with carrying out penny stock schemes.

Guy Gentile, a 39-year-old who grew up in Mount Vernon and, who operates a registered brokerage firm in Carmel, was indicted in federal court in Newark, N.J., on charges of securities fraud last week, the SEC complaint said.

Penny stocks are common stocks that are valued at less than one dollar and are, therefore, highly speculative.

According to the SEC complaint, the pump-and-dump scams generated more than $17 million in illegal proceeds and "substantial profits" for participants.

The indictment alleges that Gentile and co-conspirators bought shares of Raven Gold Corp., a purported gold and silver exploration company, and Kentucky USA Energy Inc., a natural gas production company, then inflated those shares through manipulative trading.

The indictment said they also provided illegal kick-backs and used glossy “newsletters” with fake publication names like “Stock Trend Report” and “Global Investor Watch” to promote the two companies.

The “newsletters” purposefully misled investors with positive – but phony – price and volume trends for these stocks, the SEC said.

The materials also contained false information about the promoters’ identity, how much they were compensation, and control of the stock, the SEC said.

According to the SEC, most of the so-called market activity was actually generated by Gentile and his associates who “controlled large blocks of the companies’ stocks.”

The SEC also said that those associates -- Adam S. Gottbetter, a New York City securities lawyer, and two Canadian stock promoters, Itamar Cohen and Mike Taxon -- were indicted last year for their roles in the schemes.

According to Bloomberg.com, Cohen and Taxon have pleaded guilty in the Raven Gold and Kentucky USA schemes.

Gottbetter also settled with the SEC for his role in the Kentucky USA scam, according to the SEC.

If Gentile is convicted, he could face up to 20 years behind bars.

The SEC said it is seeking repayment of the alleged schemes’ “ill-gotten gains,” fines, injunctions against future violations, and a bar against participating in penny stock offerings.

to sign up for Daily Voice's free daily emails and news alerts.

Welcome to

Clarkstown Daily Voice!

Serves Bardonia, Congers, Nanuet, New City, Upper Nyack, Valley Cottage & West Nyack

Hi! You've read our articles so we know you like our reporting. To keep reading please join our mailing list.

Get important news about your town as it happens.