Telemarketers Charged in Broward County Investment Fraud Scheme

February 3, 2014

Authorities have busted a Broward County-based “boiler room” operation, most recently arresting three men this week who are accused of selling fake stocks. News reports estimate that the scheme collectively siphoned about $4 million from investors throughout the U.S. and Canada.

The men worked for an outfit known as FMN Enterprise, which allegedly employed 14 men who posed as telemarketers and sold stock from green-technology companies, promising investors healthy returns, authorities said.

A Broward County brokerage is the center of a securities fraud and racketeering operation

A Broward County brokerage is the center of the arrest of 14 men for securities fraud and racketeering 

Generally, in the context of investing, the term “boiler room operation” refers to the use of high pressure sales tactics to sell stocks to clients who are randomly called-most likely after being picked out of a phone directory. These operations are usually based on deception and coercion, and many of these salespeople and brokers are not even qualified to work in the securities industry.

According to the probable cause affidavit, the alleged fraud occurred from April through September 2009 and targeted about 130 investors who were sold unauthorized stock for Helix Wind Inc., a California-based seller of wind turbines, and Green LED Technology LLC, which sold LED lighting.

LED Technology is based in Dania Beach.

The three recent arrests charge the South Florida men with racketeering, grand theft, and SEC regulation violations as well as other fraud-related charges. These crimes carry stiff criminal penalties, including possible prison time.

White collar crimes include a broad range of offenses, usually involving crimes in the corporate environment or non-violent crimes committed by a business person or a person in a position like in this case, a stockbroker.

Even if you have discovered that you are under investigation for a Broward County white collar crime, the attorneys at Whittel & Melton can help you navigate this confusing process and many times, even prevent the government from filing charges.

CALL US TODAY: LOCAL (561) 367-8777 OR STATEWIDE, TOLL FREE: (866) 608-5529.

Justia Lawyer Rating
Multi-Million Dollar Advocates Forum
Super Lawyers
American Association of Justice
Florida Legal Elite
Avvo Rating
AV Martindale-Hubbell
Florida Justice Association
Best Law Firms 2015
BBB - Accredited Business
Best Lawyers
NAMIL LAW Founding Member
NAMIL LAW Founding Member
Top 100
Client Reviews
This firm was extremely helpful and courteous to deal with. I did not expect to need their services, but was fortunate to find such a great firm. Thank you for your services. E.S.
Great customer service. I was always kept updated on every new detail throughout my whole case. The staff made me feel very comfortable and confident in choosing their services. Highly recommend. C.B.
I have been to this office three different times and have not one complaint ! Always prompt and on point. I wouldn't pick any other office! R.S.
The staff was very attentive and answered all my questions regarding my criminal case. I was very pleased with the outcome and professionalism. C.V.
Could never see myself using any other law firm. My case was a difficult one it was handled with perfection and extreme professionalism. R.B.