Recovering Losses caused by Investment Misconduct

Decision Reached in Federal Stock Fraud Case

Last month, the securities fraud case against Rufus Paul Harris, Darryl Horton, and Benjamin Stanley ended. The three defendants were accused of running a stock "pump and dump" scheme that allegedly cost investors millions of dollars.

Darryl Horton pleaded guilty while the jury was deliberating the case. The other two defendants were found guilty of securities fraud, wire fraud, and conspiracy in connection with their alleged scheme to defraud investors through their publicly traded company Conversion Solutions Holding Corp.

Harris, Horton, and Stanley are accused of issuing false press releases and false financial statements about their business in order to raise stock prices, according to the U.S. Attorney's Office. They are also accused of simultaneously transferring stock to relatives who sold it at the high stock prices.

Before the trial was over, Harris left Georgia where the case was being heard. He was arrested five days later in Utah.

Both Harris and Stanley face potential sentences of 25 years in prison and $250,000 fines for the securities fraud charges, 25 years in prison and $250,000 fines for the conspiracy charges, and 20 years in prison and $250,000 fines for the wire fraud charges. Harris also faces a potential sentence of 10 years in prison and a fine of up to $1 million for an alleged false certification of a financial document.
Sentencing is scheduled for August 18, 2011.

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The Law Firm of David P. Meyer & Associates represents investors in investment fraud mediation, arbitration, and litigation claims. Contact an Ohio securities fraud attorney toll-free at 614-224-6000 or complete the online form at the top of this page for more information.