Former California Stockbroker Charged in “Pump-and-Dump” Scheme

Securities Fraud Attorney in Los Angeles

A former California-based stockbroker, Stephen Wilshinsky, was charged in federal court with conspiracy to commit wire and securities fraud between 2008 and 2012. Officials say Wilshinsky’s scheme was designed to defraud and profit from investors through soliciting investments in penny stocks.

Wilshinsky is alleged to have made more than $1.4 million through commissions or by selling stocks at artificially inflated prices to his clients while working at Compass Group of Oppenheimer Inc. and Marquis Financial Services of Indiana Inc.

Wilshinsky allegedly was part of a larger conspiracy to defraud people who invested in the publicly traded companies Kensington Leasing Ltd. n/k/a Gepco Ltd. and Lenco Mobile Inc.

In a “pump-and-dump” scheme, conspirators artificially drive up the price of a stock (the “pump”) in part by pushing the shares on the investing public, creating an artificial demand that drives the price up. The fraudsters then sell (the “dump”) their own holding of the shares for a large profit, driving the price back down and leaving victims with near-worthless stocks.

If you or anyone you know has invested with California-based stockbroker Stephen Wilshinsky or in Kensington Leasing (later Gepco) or Lenco Mobile Inc., or believe you are the victim of stockbroker misconduct or investment fraud of any kind in the Greater Los Angeles area, contact our securities  fraud attorney in Los Angeles at Dimond Kaplan & Rothstein, P.A. for a free consultation.

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