Canadian pleads guilty in massive U.S. penny stock fraud case

July 18, 2015

A Canadian man pleaded guilty on Friday (July 17) to running an international boiler room scheme in a case that stemmed from one of the largest penny stock investigations in U.S. history, according to US federal prosecutors.


Sandy Winick, 57, pleaded guilty to conspiring to commit wire fraud for running a $5 million scheme in which investors in U.S. penny stocks were duped into paying fees for nonexistent services, prosecutors in Brooklyn, New York, said on Friday.

Winick had also been charged with masterminding a $140 million “pump-and-dump” fraud in which he allegedly inflated the price of worthless penny stocks and then dumped billions of shares on investors in nearly three dozen countries.

All told, nine defendants were charged with participating in one or both schemes; seven have pleaded guilty thus far.

Local authorities in Thailand arrested Winick there in 2013 and he was extradited to the United States. He faces up to 20 years in prison when he is sentenced.

His defense lawyer did not respond to a request for comment on Friday afternoon.