Kyleen Cane, 59, an attorney from Las Vegas, Nevada was indicted with six other persons last week in a federal court in Brooklyn, New York. The ten-count indictment involved orchestration of a $300 million scheme to manipulate the market with the stocks of four publicly-traded companies. The FBI said in a press release that the defendants made profits by selling to elderly investors worthless stock of a company that was supposed to provide medical coding training required by the Affordable Care Act.
The charges against Cane and the other defendants include securities fraud, conspiracy to commit securities fraud, mail fraud, wire fraud and conspiracy to commit securities fraud, and wire fraud in connection with the fraudulent market manipulation of four publicly traded companies. The involved companies include CodeSmart, Cubed Inc., StarStream Entertainment Inc., and The Staffing Group, Ltd.
Besides seizing the residence of one of the accused, the government also seized a dozen bank and brokerage accounts containing illegal earnings.
The indictment was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).