Boiler Room Operators Scammed Elderly Investors Out Of $147 Million In Pump And Dump Scam
Boiler room operators Ronald Hardy and Dennis Verderosa are going to prison. The federal court in New York has sentenced Hardy to 10 years in prison and Verderosa to 6 years in prison. The two ran a $147 million pump and dump scheme that defrauded investors in publicly traded companies.
Hardy was a manager of a boiler room operation. Dennis Verderosa was a cold-caller and account executive at the boiler room.
Between January 2014 and July 2017, Hardy and 15 co-defendants ran a pump and dump scheme that defrauded investors in publicly traded companies by artificially inflating the price and trading volume of stock of the companies. They also mislead victim investors about the company’s potential profitability. Several of the boiler room operators controlled stock in the manipulated companies.
As a result, they profited while the victim investors lost millions of dollars after the stock prices plummeted.