Update on ex-broker Craig Josephberg – Securities Fraud Investigation
According to reports, former broker Craig Josephberg pled guilty to securities and wire fraud and conspiracy charges last week, ahead of his scheduled trial in April.
As we told you in August 2014, Craig Josephberg was indicted on charges of securities fraud in connection with an alleged $300 million market manipulation scheme in four publicly traded companies, CodeSmart, Cubed, StarStream and Staffing Group.
According to reports, Craig Josephberg told the US district judge at a hearing in Brooklyn last week, that he knowingly agreed to participate in manipulating share price and trading volume of penny stock companies from March 2013 through July 2014.
In last week’s hearing, Josephberg also reportedly admitted to placing bids for the stocks in his clients’ accounts without authorization.
According to his BrokerCheck report, Josephberg has been affiliated with New York brokerage firm Meyers Associates since 10/25/2013. From 11/2010 – 10/2013, he was employed by Halcyon Cabot Partners. Halcyon Cabot was expelled in October 2015, according to FINRA. Josephberg hasn’t been registered with any other FINRA firms since then.
Failure to Supervise
The White Law Group continues to investigate the liability that Josephberg’s employers may have for his actions. Brokerage firms have a legal responsibility to adequately supervise the business activities of their employees. If a broker engages in a scheme that misleads clients the brokerage firm that employs them may be liable for negligent supervision.
If you suffered losses investing with Craig Josephberg and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to the representation of investors in FINRA arbitration claims against brokerage firms throughout the United States. Our offices are located in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, please visit the firm’s website at www.WhiteSecuritiesLaw.com.