A New York stock broker has admitted to his role in a $20 million stock fraud scheme based in Connecticut that swindled thousands of victims across the country.
Brian Ferraioli, 40, of Sayville, New York, pleaded guilty Wednesday to fraud and tax charges. He's the sixth person to plead guilty in the case.
Federal prosecutors said conspirators acquired blocks of stock in worthless shell companies and then pitched the companies as potentially successful to investors. Prosecutors said they used rigged stock trades and other tricks to inflate share prices of the stock.
Prosecutors said the scheme affected more than 12,000 victims, many of whom lost life savings.
Former Hartford city councilor Corey Brinson was sentenced to three years in prison in April after pleading guilty in the case.
Anyone with information that might be helpful to the ongoing investigation, or who believes he or she might have been victimized by this scheme, is encouraged to call the FBI at (203) 777-6311.