SEC bars rep sentenced for securities fraud

Gerald Cocuzzo involved in $131 million market manipulation scheme.
SEP 19, 2017

The Securities and Exchange Commission Inc. has barred former broker Gerald Cocuzzo for his role in a $131 million market manipulation scheme involving the shares of ForceField Energy. In July, Mr. Cocuzzo, of Delray Beach, Fla., was sentenced to 18 months in prison for his role in the fraud. Between 2009 and 2015, according to releases from the SEC and the U.S. Attorney's Office, Mr. Cocuzzo and others artificially controlled the price and trading volume of ForeField shares by using nominees to purchase and sell stock without disclosing the information to investors and potential investors. In addition, they were accused of orchestrating the trading of ForceField stock to create the misleading appearance of genuine trading volume and interest in the stock, and concealing secret payments to stock promoters and broker-dealers who promoted and sold ForceField stock to investors and potential investors while falsely claiming to be independent of the company. The fraudulent scheme caused a loss of approximately $131 million to the investing public, the Justice Department said. Between January 2015 and April 2015, Mr. Cocuzzo received secret cash kickbacks from a ForceField executive in exchange for purchasing ForceField stock in his clients' brokerage accounts, the Justice Department said. He did not disclose these payments to his clients, and he concealed his participation in the fraudulent scheme by using prepaid, disposable cellular telephones and encrypted, content-expiring messaging applications, and by paying kickbacks in cash during in-person meetings. Mr. Cucozzo, who worked at nine firms since he started his securities career in 2009, was most recently employed by Newbridge Securities, which discharged him in May 2016 after his indictment was handed down.

Latest News

JPMorgan mulls new asset lending scheme aimed at crypto ETF investors
JPMorgan mulls new asset lending scheme aimed at crypto ETF investors

Insiders say the Wall Street giant is looking to let clients count certain crypto holdings as collateral or, in some cases, assets in their overall net worth.

Fintech bytes: Future Capital adds RayJay alum to C-suite, Advyzon welcomes ex-Envestnet leader
Fintech bytes: Future Capital adds RayJay alum to C-suite, Advyzon welcomes ex-Envestnet leader

The two wealth tech firms are bolstering their leadership as they take differing paths towards growth and improved advisor services.

UBS 'wrongfully' fired Idaho advisor in 2021: FINRA panel
UBS 'wrongfully' fired Idaho advisor in 2021: FINRA panel

“We think this happened because of Anderson’s age and that he was possibly leaving,” said the advisor’s attorney.

Cetera Trust hires Fidelity vet Kerri Scharr for chief fiduciary officer role
Cetera Trust hires Fidelity vet Kerri Scharr for chief fiduciary officer role

The newly appointed leader will be responsible for overseeing fiduciary governance, regulatory compliance, and risk management at Cetera's trust services company.

Trump's 'revenge tax' might come back to bite US borrowers, experts say
Trump's 'revenge tax' might come back to bite US borrowers, experts say

Certain foreign banking agreements could force borrowers to absorb Section 899's potential impact, putting some lending relationships at risk.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave

SPONSORED The evolution of private credit

From direct lending to asset-based finance to commercial real estate debt.