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by Mike Caswell

Michael Krome, the New York lawyer charged for writing fraudulent opinion letters in the CO2 Tech Ltd. market manipulation, has pleaded guilty to one count of conspiracy to commit securities fraud. He entered the plea in a 35-minute appearance before a judge in Miami on Friday, Jan. 13.

Prosecutors allege that Mr. Krome and others, including recidivist securities violator Jonathan Curshen, were part of a 2007 scheme to boost CO2 Tech with false claims about a pollution control product in which Boeing had purportedly taken an interest. The men pumped the stock to $1.65 and obtained $7-million in illegal profits, according to the government. (All figures are in U.S. dollars.) Also named in the scheme was former Pacific International Securities Inc. broker David Ricci, who is a defendant in a parallel civil suit from the U.S. Securities and Exchange Commission.

According to prosecutors, Mr. Krome, 49, wrote fraudulent opinion letters that allowed his co-defendants to obtain 22.5 million tradable shares in CO2 Tech, many of which they sold during the promotion. He also tried to conceal their identities in subsequent interviews with the SEC. Mr. Krome had initially pleaded not guilty to the charges. He is now scheduled for sentencing on Wednesday, May 9, and remains free on a $100,000 appearance bond. The maximum sentence is five years in jail.

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