Prison bars. Photo courtesy of Shutterstock.com

A federal judge in Connecticut has sentenced a South Florida man to 84 months’ imprisonment for securities fraud.

U.S. District Judge Jeffrey A. Meyer in New Haven sentenced 42 year-old Boca Raton resident William Lieberman to imprisonment, and then three years of supervised release, over a far-reaching scam that that defrauded more than 12,000 victims out of $19 million in investments.

Lieberman is the latest person sentenced for the venture that led to the arrest of two attorneys — Corey Brinson of Hartford, Connecticut, and Diane Dalmy of Denver, Colorado — who were sentenced as co-conspirators earlier this year.

 

Attorney’s Imprisonment Should Serve as Lesson

 

 

According to a release from the U.S. attorney for the District of Connecticut, Lieberman, Brinson, Dalmy and others used a “pump and dump” scheme to mislead investors into purchasing stocks under false pretenses between 2010 and July 2016.

Lieberman alternated roles at the various issuing companies, including stints as the chief executive officer, chairman of the board, president, secretary and treasurer of Mammoth Energy Group, Inc. and the president, chief executive officer, and chairman of the board of Strategic Asset Leasing Inc., among others.

To dupe victims, prosecutors alleged Lieberman utilized letters by attorneys who participated with full knowledge of the fraud being perpetrated on victims. They alleged Brinson allowed an accomplice in the scheme to forge his name, as well as his signature, on fraudulent letters and documents. They accused Dalmy, meanwhile, of laundering roughly $825,000 using both her personal bank account and her attorney account.

In April, Meyer sentenced Brinson, a former Hartford city councilor, to three years in prison and ordered him to pay about $1.5 million in retribution.

“My major concern here is, I’m very alarmed that you essentially traded on your name and your status as an attorney to advance a fraud scheme,” the Hartford Courant quoted the judge as telling Brinson. “It wasn’t a scheme of your making, but you lent stature to it.”

Dalmy acted under Lieberman’s direction, laundering funds through trust accounts, according to a May report in the Denver Post. Meyer sentenced her to to 36 months in prison, ordered her to repay $2 million and ordered three years of supervised release after incarceration.

Over the course of this scheme Lieberman generated nearly $1.2 million in profits. By failing to report these earnings to the Internal Revenue Service, prosecutors say he evaded $436,235 in federal incomes taxes between 2011 and 2015.

In May 2017 Lieberman pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of tax evasion. Meyer ordered him to pay $5,301,694 in restitution to the victims of the fraud scheme, as well as the more than $400,000 withheld from the IRS.

Meyers’ defense attorney, Joseph W. Martini of Wiggin and Dana, was not immediately available for comment by press time. Brinson and Dalmy’s legal counsel, Thomas J. Murphy and Daniel E. Wenner respectively, did not respond to requests for comment by deadline.