Gerova Ex-CEO Gets 78 Months in Pump-And-Dump Scheme

Ex-CEO Gets 78 Months in Gerova Pump-And-Dump Scheme

Gerova Ex-CEO has been sentenced in New York federal court to 78 months in prison. In addition to prison time, U.S. District Judge Kevin Castel also ordered the ex-CEO to serve one year of supervised release and forfeit about $19 million.

Gerova Ex-Ceo Convicted in Scheme

Last year in September, a jury convicted the Gerova ex-CEO Gary Hirst of securities fraud in connection with the illegal Gerova pump-and-dump scheme. According to prosecutors, the former executive secretly awarded nearly $72 million dollars of Gerova’s stock to himself and others. He did so by quietly taking control of nearly half of the company’s public float, cashing out after bribing investment advisers to buy shares for their own clients.

Prosecutors said, in total, the scheme generated nearly $20 million dollars of illegal profit. Of that, Hirst received a total of $2.62 million.

In a statement, acting U.S. Attorney Joon Kim said, “Hirst and his co-conspirators issued large amounts of stock, lied about their roles, and found other novel means to defraud the stockholders of Gerova Financial and the investing public.”

Gerova Scheme Involves Seven People

Hirst, 64, is one of seven people charged and sentenced over the Gerova pump-and-dump scheme. Former investment banker Jason Galanis, along with his father and two brothers also have been charged and sentenced. One defendant remains at large.

Have You Been a Victim of Securities Fraud?

If you have been a victim of securities fraud, you may have certain legal rights that require your immediate attention.

Call a Securities Fraud Attorney Today

If you are looking for a securities fraud attorney to review your rights and options, the securities fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from brokers and brokerage firms for their wrongful actions.

With offices in Los AngelesNew YorkWest Palm Beach and Miami, our securities fraud attorneys represent clients nationwide and may be able to help you recover your investment losses.

Contact a securities fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

A Gerova Financial Group executive will go to jail.

Gerova Financial Group Executive Sentenced

Gerova Financial Group Executive once involved in the adult entertainment industry was recently sentenced to 11 years in prison after pleading guilty last August to securities fraud and other charges.

Jason Galanis, a Gerova Financial Group Executive, was sentenced in Manhattan federal court over charges stemming from his manipulation of the market for a publicly traded company, Gerova Financial Group Ltd., between 2009 and 2011.

According to prosecutors, the Gerova Financial Group executive was the ringleader of a multimillion-dollar fraud scheme that secretly acquired shares of Gerova and then manipulated the market by cashing out. We blogged about Galanis’ charges when he first pled guilty here.

Second Time Schemer

Galanis also targeted South Dakota’s Oglala Sioux in a separate $60 million bond scheme, using the proceeds to purchase luxury items and to invest in other ventures. He amassed nearly 5 million shares, and hid his ownership through the use of a shell company. Galanis eventually cashed out, netting himself a tidy sum of $20 million between 2007 and 2011. He has yet to be sentenced in this matter.

Did You Invest with Gerova Financial? 

If you invested with Jason Galanis, Gerova Financial Ltd., or one of his related ventures, you may have certain legal rights that require your immediate attention.

Call a Los Angeles Securities Fraud Attorney Today

Contact an experienced Los Angeles securities fraud attorney today for a consultation to discuss your rights and options.