NEWARK, N.J. – Two New Jersey men have been charged with running a securities fraud scheme that investigators say netted them more than $26 million in illegal profits.
Federal prosecutors announced criminal charges Monday against 37-year-old Joseph Taub, of Clifton, and 21-year-old Elazar Shmalo, of Passaic. The Securities and Exchange Commission also filed civil charges against the men.
Investigators say they used dozens of brokerage accounts to drive up the cost of $10 billion worth of securities. Prosecutors say they then sold securities they owned at inflated prices.
The men were scheduled to appear in front of a judge Monday afternoon. It wasn't immediately clear if they had attorneys to comment on their behalf.