Six Men Are Indicted In Alleged Stock Fraud
April 04, 2011
Uptown -- The U.S. Attorney's office here announced the indictment of six men in connection with an alleged stock swindle that cheated several brokerage firms out of more than $1 million. The indictment alleges that during 1990 and 1991 the defendants conspired to ``manipulate trading'' in the shares of a small Uptown area company called E.N. Phillips Inc. that was in the business of providing medical-testing services. To create demand for the stock, the defendants allegedly set up accounts at various brokerage firms and made purchase orders for Phillips stock but then never paid for the shares. The U.S. Attorney's office said that as a result of the alleged manipulation, the price of Phillips stock doubled to about $3 a share on the Nasdaq Stock Market. When the various brokerage firms that received the bogus orders had to sell the shares, the price fell to about 25 cents a share, the prosecutors said. Phillips has since changed its name to NuOasis Gaming Inc. and hasn't been in the medical-testing business for years, company secretary Johnetta Lasalle said.
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