Herschel Knippa Faces Prison For $131M Scheme

New York prosecutors claim Herschel Knippa, a former broker who pitched “worthless” stock to investors and television viewers, is looking at prison time for participating in a $131 million market manipulation scheme.

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U.S. Attorney Robert L. Capers in Brooklyn says Herschel, who goes by “Tres,” of Dallas, Texas pleaded guilty Monday to conspiracy to commit securities fraud.

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Authorities say the scheme ran from around 2009 to 2015 and artificially controlled the price and volume of traded shares of ForceField Energy Inc., a distributor of LED lighting products.

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They claim Herschel Knippa got kickbacks to shill the stock at investor conferences and as a TV guest commentator.

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Participants communicated with burner phones and encrypted text messages, according to the prosecution.

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Knippa could be sentenced to up to five years in prison, restitution and a fine.

[su_spacer size=”10″]The Frankowski Firm has years of experience representing investors who have lost money as the result of brokers’ fraudulent schemes. If you or someone you know has lost money as a result of such a scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.