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A New York lawyer who pleaded guilty last year to taking part in an $86 million pump-and-dump stock manipulation scheme has now been disbarred after a ruling from the New York Appellate Division, First Department.

The lawyer, Darren Ofsink of Merrick, New York, formerly headed a four-lawyer firm called Ofsink LLC in Manhattan. He was indicted in 2015 along with a pair of registered securities brokers as part of a criminal case that also targeted several other co-defendants. The U.S. Attorney’s Office for the Eastern District of New York accused Ofsink and the others of engineering a reverse merger that turned CodeSmart Holdings Inc. into a publicly traded company and then manipulating CodeSmart’s stock value.

“After gaining control of CodeSmart’s 3 million purportedly unrestricted shares, the co-conspirators on two occasions fraudulently inflated CodeSmart’s share price and trading volume and then sold their shares at a profit when the price reached desirable levels,” the U.S. Attorney’s Office said in an October 2017 statement.

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Scott Flaherty

Scott Flaherty, based in New York, covers the business of law with a focus on legal ethics, lawyer misconduct, conflicts-of-interest and litigation involving law firms. He can be reached at [email protected] On Twitter: @sflaherty18

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