June 15, 2024


Equality opinion

Florida lawyer and disbarred New York attorney are indicted in alleged belief letter plan

Securities Regulation

Florida attorney Thomas Craft and disbarred New York attorney Richard Rubin have been indicted in an alleged scheme to create fraudulent feeling letters that allowed sales of microcap stock to the investing general public.

Rubin, 78, of Brooklyn, New York, and Craft, 55, of Tequesta, Florida, are billed with securities fraud and conspiracy to commit securities fraud, in accordance to a Dec. 2 press launch by the U.S. attorney’s office in Manhattan.

A U.S. Securities and Exchange Commission complaint seeks civil penalties and a ban on collaborating in penny stock choices the indictment is here.

Bloomberg Legislation and Legislation360 have coverage.

Craft is accused of serving as a rubber stamp on impression letters for which Rubin experienced accomplished the authorized function, despite his disbarment in 1995. The letters that Craft signed claimed that he experienced individual knowledge of the basis for his opinions, even nevertheless he did not, the complaint alleged.

Rubin also signed some letters himself whilst fraudulently proclaiming to be a lawyer, according to the complaint. Rubin signed at the very least 98 legal professional belief letters, though Craft signed at the very least 29, according to the complaint.

Craft was compensated $400 to $2,500 for every viewpoint letter he signed, the SEC claimed.

A attorney for Craft, James Sallah, advised Bloomberg Legislation that his consumer looks ahead to addressing the allegations in the indictment. Sallah reported Craft has consented to a everlasting injunction in the SEC subject with out admitting to or denying the allegations. A attorney for Rubin declined to comment when contacted by Bloomberg Law.