by Mike Caswell
David Ricci, the former Pacific International Securities Inc. broker charged in Florida for the pump-and-dump of CO2 Tech Ltd., has been sentenced to 18 months in jail. The sentence was handed down in a hearing on Thursday, May 10, before Miami Judge Richard Goldberg. Mr. Ricci, 41, previously pleaded guilty to one count of conspiring to commit securities fraud, wire fraud and mail fraud.
The charges stem from a scheme in which Mr. Ricci and others boosted CO2 Tech to $1.65 with manipulative trades while the company falsely claimed to have a relationship with Boeing. The scheme netted $7-million in illegal profits, according to prosecutors. (All figures are in U.S. dollars.)
Mr. Ricci was one of four people sentenced on Thursday for the promotion. Others included Michael Krome, 50, a securities lawyer from New York who wrote opinion letters that permitted the issuance of millions of free-trading shares used in the pump-and-dump. He received 34 months in jail and was ordered to forfeit $17,490.