When staring down the barrel of seven-and-a-half years in Federal Prison for embezzling $5 million of client funds, New York accountant Stephen P. Corso decided that cooperating with the Feds was in his best interest. And without question, if he could provide that "substantial assistance" in connection with organized crime, he would certainly be sitting pretty when it came time for sentencing. And he was right. Although Corso was arrested in 2002 for the theft, it wasn't until 2009 that he was sentenced to less than a year. Many recall Corso's portfolio of informant work in helping to secure the life sentences of the "Mafia Cops," the crime family assassins moonlighting as NYPD officers. Well, evidently Corso failed to learn his lesson the first time around, and now finds himself the target of the United States Attorney's Office, again.
The penny-stock game is well known for its overnight riches and overnight ruins. Often referred to as Pink Sheets, these are companies that trade OTC (over-the-counter) and typically trade in small ranges of nickels and dimes, with swings into the dollars. What makes penny stocks attractive is the idea of owning something for a few cents, then seeing it climb a few dollars for instant riches. The problem with the market is that it often encounters liquidity issues, which makes trading difficult, especially when trying to cash out of positions. But the bigger problem is the lack of regulatory oversight, making this market a prime candidate for creative accounting, fraud, and boiler room pitches.
Enter Stephen P. Corso. As part of his first felony conviction, he agreed to no longer engage in CPA (Certified Public Accountant) activities. However, Corso has decided to ignore that ban, and has spruced up his resume with fake educational credentials that include a license to practice law and a freshly minted CPA license that all shimmer and shine with a slight variation of his name. Unfortunately, in body, mind, and in spirit, it is still the same Corso, and he's now on the government's unforgiving radar.
The Securities and Exchange Commission has claimed it's "likely" that an enforcement action will be filed as a result of a probe into alleged penny stock fraud involving Corso, which means that action is imminent. What is also probable is that the United States Attorney's Office will use that enforcement action (complaint) as a blueprint for the forthcoming criminal indictment. Because many of the "civil" security violations promulgated in the United States Code map that of the criminal Title 18 violations, the overlapping quality will make substituting the "civil "charges a simple 'Cut and Paste' for Wire Fraud (18 U.S.C. §1343 ) and Mail Fraud (18 U.S.C. §1341) charges.
Of course, Mr. Corso has not been proven guilty of anything, and it will likely be up to his lawyer and himself to explain away some very nebulous business tactics, but this time around he won't have the benefit of being a highly-placed mob informant, sipping cocktails in Vegas strip clubs, where the scenery was undoubtedly better.