Hartford Lawyer Sentenced for Stock Scheme

HARTFORD, CT — A Hartford lawyer has to pay back more than $1 million and service some jail time for what a leading prosecutor has been calling a stock "pump and dump scheme."

Deirdre M. Daly, United States attorney for the District of Connecticut, announced on Monday that Corey Brinson, 37, of Hartford, was sentenced by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for his involvement in a securities fraud scheme.

According to court documents and statements made in court, between approximately October 2010 and July 2016, Brinson, a licensed attorney, served as the nominal “securities counsel” for several companies whose securities were marketed and sold to the investing public by Christian Meissenn and Meissenn’s business associates in a stock “pump and dump” scheme.

Meissenn and his associates induced investors to purchase securities by making false and misleading representations about the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated, Daly said.

After selling their own shares at a profit, the scheme’s participants allowed the price of the securities to fall, leaving investors with worthless and unsalable stock, according to court documents. As a result, "victim investors" lost millions of dollars, according to Daly.

As part of the scheme, Brinson, who did not have any experience with securities and securities markets, signed, or permitted others to affix his signature to, false and misleading attorney opinion letters that "were designed to provide assurances to securities transfer agents and prospective investors," Daly said.

Among other things, the opinion letters falsely certified that Brinson, as an attorney, had adequately reviewed corporate records and filings and was satisfied with the adequacy of the companies’ public disclosures, she said.

The opinion letters were then provided to securities transfer agents and prospective investors, she added.

Brinson also received deposits of millions of dollars in proceeds of securities transactions into his Interest on Lawyer Trust Account , or IOLTA, Daly said. Rather than use the proceeds to purchase securities and fund operations at the underlying companies, Meissenn and others directed Brinson to distribute nearly all the money to relatives, associates and shell companies associated with Meissenn and his associates, she said.

Brinson knew that approximately $3 million that passed through his IOLTA were the proceeds of the illegal securities scheme, Daly said.

In exchange for providing his services, Brinson received approximately 5 percent of the proceeds that passed through his IOLTA, Daly said.

Brinson also received payment for preparing the false opinion letters, Daly said.

Brinson's personal gain in the operation totaled approximately $200,000, Daly said.

Judge Meyer ordered Bronson to pay restitution in the amount of $1,417,810.

Brinson on Jan. 20 entered a guilty plea to one count of engaging in a monetary transaction in property derived from specified unlawful activity. He surrendered his law license in November 2016, Daly said.

On November 8, 2016, Meissenn pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of tax evasion. He awaits sentencing.

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