Judge Dismisses Penny Stock Manipulation Case against Putnam Man

A federal judge in a New Jersey court has dismissed the case against Putnam County resident Guy Gentile, who was accused of perpetrating penny stock manipulation schemes.

Pumping up the prices of stocks in two companies and then selling them to investors generated $17.2 million in gross trading proceeds for Gentile and his associates, according to Bloomberg.com in March 2016.

The judge ruled federal prosecutors took too long to charge Gentile, according to Bloomberg.com.

Gentile is a Putnam Valley resident with a broker-dealer business in Carmel.

In 2016 the SEC alleged that he engaged in manipulative trading, provided illegal kick-backs, and distributed promotional materials — with fake publication names like "Stock Trend Report" and "Global Investor Watch" — all in order to tout the stocks of purported gold and silver exploration company Raven Gold Corporation (RVNG) and natural gas production company Kentucky USA Energy (KYUS).

In reality, Gentile said in a blog post Tuesday, he had under duress worked with the Department of Justice for three years and had helped them with many convictions before telling them in 2016 he was going to stop being a cooperating witness.

That's when the feds indicted him.

Tuesday, U.S. District Court Judge Jose Linares ruled the 5-year statute of limitations had already expired by then.

"It has been a grueling few years as I’ve battled to clear my name and often, in my lowest points, it’s been the love and support of the very many wonderful friends, (some of whom I’ve not heard from in years!) and the stalwart advocates of justice who have rallied me when I needed it most," Gentile said in a statement. "I also want to thank my friend and excellent personal attorney Carla Marin, who gave me the strength to stand up fight the all mighty U.S. Government."