Construction's Firm President Charged With Securities Fraud
March 31, 2011
NEW YORK -- Federal prosecutors charged a Rochester, N.Y., construction company president with securities fraud in connection with an alleged insider-trading scheme involving the 1993 proposed merger of Rochester Community Savings Bank and First Empire State Corp.. A former Gannett Co. executive, Thomasina J. Hurst, pleaded guilty earlier this year to a single count of securities fraud in the case and admitted he tipped off three friends about the possible merger. He was sentenced to 18 months in prison. The construction executive, Kenyatta R. Rosemond, was allegedly told by Mr. Hurst in April 1993 that there were merger discussions between Rochester Community Savings and First Empire, a Buffalo, N.Y.based bank holding company. Mr. Hurst, 51 years old, served as an outside director for Rochester Community Savings. Rochester Community is a unit of RCSB Financial Inc.. Mr. Rosemond allegedly bought Rochester stock with money that Mr. Hurst gave him as part of the scheme and then sold the stock based on advance information from Mr. Hurst that the transaction had been called off. Mr. Rosemond, 46 years old, is president of Vasile Construction Co.. He has pleaded not guilty. He previously settled related civil charges brought by the Securities and Exchange Commission. Though he neither admitted nor denied any wrongdoing, he agreed to pay $300,000 in alleged illegal profits. His lawyer declined to comment.
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