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by Mike Caswell

Marc Riviello, one of seven men charged in a scheme that included Investors Hub operator Matthew Brown, has received eight months in jail. The sentence, handed down by Delaware Judge Sue Robinson, comes over one year after Mr. Riviello pleaded guilty to a charge that stemmed from his role in a $6.2-million pump-and-dump operation. (All figures are in U.S. dollars.)

Prosecutors claimed that he and others profited from the manipulation of four companies with misleading news and manipulative trades in 2006 and 2007. The stocks included Playstar Corp., an Ontario pink sheets listing that purported to be developing a text message system for cellphones. Mr. Riviello, who was a broker in California, served accounts that sold shares in the scheme, and helped the others relay money.

His eight-month sentence falls well short of the 10-year maximum for the charges he faced. Other terms of his sentencing include two years of supervised release, participating in a drinking driver program and enrolling in cognitive behaviour therapy (which is commonly used to treat substance abuse and anxiety, among other things). Full circumstances of his sentencing, including the sentencing recommendation, are not publicly available. For reasons not clear, recent court documents pertaining to him were filed under seal.

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