A Southern Tier man who collected nearly half a million dollars from a penny stock scheme has been sentenced to 18 months in prison by U.S. District Judge Richard J. Arcara following his conviction of conspiracy to commit securities fraud, U.S. Attorney William J. Hochul Jr. announced.
Prosecutors said that Jamie Boye, 34, of Jamestown, formerly of Portville, and others ran a “pump-and-dump” scheme from Oct. 22, 2008, to Sept. 15, 2011, using internet websites with names such as trypennystocks.com to advertise 29 low-priced stocks as good investments. Once the stock prices inflated to a certain point, Boye and the others sold their shares for a large profit.
Boye was paid $498,714.25 for his part in the scheme, for which the court issued a judgment. A car, an SUV, an all-terrain vehicle and Boye’s real estate holdings were seized and will be sold to help pay off the judgment, Hochul said.