This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

Investors Hub operator Matthew Brown, recently ordered to forfeit $4.78-million to the U.S. government as part of his sentence for securities fraud and money laundering, has asked the judge to substantially reduce his penalty. (All figures are in U.S. dollars.) He says the figure amounts to a "lifetime financial death sentence" and exceeds by far his earnings from the scheme. He asks that the judge instead order him to forfeit his actual gain, which was $117,000.

The forfeiture order stems from a scheme in which Mr. Brown, 28, and others manipulated stocks with prearranged trades and posts on Investors Hub. The stocks included in the investigation were Ontario-based Playstar Corp. Mr. Brown, who faced a maximum of 50 years in jail, agreed to plead guilty to the charges in February, 2010, in return for a favourable sentencing recommendation.

Mr. Brown now says he received a surprise when he appeared for sentencing on May 18, 2011, before Delaware Judge Sue Robinson. As expected, she imposed a four-year jail term and ordered him serve three years of probation. The unexpected part, according to Mr. Brown, was a $4.78-million disgorgement order that came along with the jail term.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS