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.
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.
[su_spacer size=”10″]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.
[su_spacer size=”10″]They claim Herschel Knippa got kickbacks to shill the stock at investor conferences and as a TV guest commentator.
[su_spacer size=”10″]Participants communicated with burner phones and encrypted text messages, according to the prosecution.
[su_spacer size=”10″]Knippa could be sentenced to up to five years in prison, restitution and a fine.