Nick Khan Sentenced to Two Years Prison for $131M Scheme
According to reports, Nick Khan, former securities broker from Staten Island, is going to prison for two years for his role in a $131 million market-manipulation scheme involving ForceField Energy.
Khan, 35, was sentenced Tuesday in Brooklyn federal court to 24 months in prison and two years’ supervised release for accepting kickbacks to stuff clients’ portfolios with worthless ForceField Energy Inc. stock, according to reports.
Authorities said hundreds of clients were swindled since ForceField had no real business operations and very little revenue.
There were reportedly five registered brokers charged in the plot, including Nick Khan. The scheme allegedly ran from January 2009 through April 2015, said authorities.
As we told you last year, Khan pleaded guilty to securities fraud in July 2016.
According to FINRA BrokerCheck, Naveed (Nick) Khan was employed with Meyers Associates, in Staten Island, NY from 04/2013 – 05/2016.
Market-Manipulation Scheme and ForceField Energy
The scheme allegedly involved the trading of ForceField Energy stock, artificially controlling its price and volume to create the appearance of genuine trading volume and interest in the stock, authorities said.
They also allegedly hid payments to stock promoters and broker dealers who touted and sold the stock while claiming to be independent of the company, said authorities.
Between February 2015 and April 2015, a ForceField Energy executive reportedly paid kickbacks to Khan to buy company stock for Khan’s clients, authorities said. Khan and ForceField did not disclose their relationship or the kickbacks to the defendant’s customers, said officials.
Khan and his co-conspirators purportedly sought to hide their roles by communicating with each other through prepaid, disposable cell phones and encrypted, content-expiring message applications, said officials.
In addition to prison time and supervised release, Khan will apparently also be subject to money forfeiture.
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