Manhattan Man Allegedly Frauds Melville Company

The Securities and Exchange Commission has charged a Manhattan man with posing as the president of a Melville company in order to trick investors into believing he was driving millions into a penny stock firm.

The SEC alleges that Ronald Feldstein pretended to be the president of LED, Capital Corp., and entered into an investment agreement with penny stock issuer Interlink-US-Network Ltd. Feldstein in fact held no such position at LED Capital Corp, the SEC says, and was being paid by Interlink’s management to play the role of a supposed Interlink investor so they could spread news of a much-needed capital infusion. The SEC said that Feldstein then helped Interlink disseminate the false information in an SEC filing.

The SEC charged Interlink last year as part of a complaint against several perpetrators of an alleged green product-themed Ponzi scheme.

“Feldstein was nothing more than a fake president for hire who schemed with a public company to tout news of a sham investment and deceive investors,” Andrew M. Calamari, Acting Regional Director of the SEC’s New York Regional Office, said in a statement.

According to the SEC’s complaint filed in U.S. District Court for the Southern District of New York, Feldstein purportedly committed LED Capital Corp. – which in reality had no operations or assets – to pay $6 million for a minority block of Interlink shares that had an actual market value of less than $1.2 million.

Although Feldstein knew the actual owner of LED Capital Corp., it is believed that he concealed the purported contract committing his company to pay more than a 500 percent premium for a minority block of shares in a penny stock company that had liabilities far exceeding its assets.

For his performance as the phony president of LED Capital Corp., Interlink awarded Feldstein more than $400,000 in common stock.

When SEC investigators spoke with the actual owner, he testified that he has been the sole officer-stockholder of LED Capital Corp. and never had any knowledge of the purported agreement. He testified that Feldstein had no authority or permission to act on behalf of the company, which he said doesn’t and likely never would have $6 million available to it. 

Feldstein, 65, is the only defendant in the case, which names several other "relevant persons and entities," including LED Capital Corp.; LED Capital LLC, "a fictitious company;" Interlink-US-Network Ltd., of Los Angeles; the Verigreen Group; Robert Kondratick, 41, of Syosset, N.Y., "99 percent owner of the Verigreen Group" and president and chairman of the board of Interlink; and others.