Ex-Stockbrokers Targeted Elderly In Stock Scheme: Feds

CENTRAL ISLIP, NY — A pair of former registered stockbrokers were found guilty for their roles in a stock manipulation scheme that cost elderly victims millions of dollars, federal authorities announced Wednesday. Jeffrey Chartier, 56, of Los Angeles, and Lawrence Isen, 66, of San Diego, worked with Long Island boiler room companies in Melville and Plainview and were convicted of money laundering, wire fraud and securities fraud charges. Chartier was also convicted of trying to obstruct an official proceeding after lying to the FBI following his arrest.

Chartier and Isen each face more than 20 years in prison after a federal jury in Central Islip reached the verdict following a six-week trial.

"Chartier, Isen and their co-conspirators lied to investors, including elderly victims, but the jurors here saw the truth – that these defendants were brazenly stealing money through fraudulent investment schemes," United States Attorney Donoghue stated in a news release.

The duo manipulated and fraudulently promoted shares of publicly traded companies Hydrocarb Energy, CES Synergies, National Waste Management Holdings and Intelligent Content Enterprises.

From 2013 to 2017, Chartier, Isen and the two Long Island boiler rooms, known as Elite Stock Research and Power Traders Press, artificially inflated the price and trading volume of the four stocks. They used a cold-calling campaign based on lies and high-pressure sales tactics to lure victims, mostly elders, into buying stock. The conspiracy’s market manipulation unfairly inflated the stock price of the four stocks by more than $147 million.

Chartier, who became a major shareholder in CES Synergies and National Waste Management after persuading those companies to retain him to help take them public, used the boiler rooms to dump nearly $2 million worth of those companies' shares on victims. He also sold stock to people in private transactions without telling them the stock was manipulated to trade at an artificially high price and volume. He used money made through the scheme to buy a $350,000 luxury RV equipped with a flat screen television and a fireplace, which he used as a traveling office.

Chartier, after being arrested in July 2017 and waiving his Miranda rights, lied to the FBI about his and others’ involvement in the scheme, including that he sold National Waste Management shares only via purchase agreements.

Isen — who was banned from acting as a broker in 1996 and convicted of wire fraud conspiracy in in 2000 — orchestrated the manipulation of stock belonging to, among others, major Hydrocarb Energy shareholder Michael Watts, 63, of Sugarland, Texas, and major Intelligent Content Enterprises shareholders in India. Watts was convicted in October for his role in the stock manipulation scheme and awaits sentencing.

Four others have been sentenced in the case: Ronald Hardy, 44, of Port Jefferson, was sentenced to 10 years imprisonment; Dennis Verderosa, 79, of Coram, was sentenced to six years; McArthur Jean, 37, of Dix Hills, was sentenced to four years, and Emin Cohen, 36, of Coram, was sentenced to two years.

Others who were previously convicted are Stephanie Lee, 48, of St. Petersburg, FL; Erik Matz, 46, of Mt. Sinai; Brian Heepke, 39, of Farmingdale; Paul Ewer, 39, of Massapequa; Ashley Antos, 28, of Central Islip; Sergio Ramirez, 46, of East Meadow; Robert Gilbert, 53, of Cold Spring Harbor; and Anthony Vassallo, 56, of Farmingdale.