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Defrauders Face Prison Time, $44M in Restitution

Rufus Paul Harris was sentenced to 23 years in prison.

Three men involved in a Kennesaw-based stock pump-and-dump scam were sentenced to prison today and ordered to repay over $44 million in restitution to more than 5,000 investor victims.

The 43-year-old founder and CEO of Conversion Solutions Holdings Corp, Rufus Paul Harris of Oklahoma City, OK, was convicted in U.S. District Court in May on eight counts of securities fraud, wire fraud, conspiracy and false certification of a financial statement.

Harris before his trial concluded but was caught five days later.

The company's co-founder, 48-year-old Benjamin Stanley of Kennesaw, was sentenced to 16 years in prison. Former chief financial officer, 50-year-old Darryl Horton of Okemos, MI, was sentenced to four and a half years in prison after pleading guilty to conspiracy.

“These significant sentences reflect the seriousness of the massive fraud these defendants committed against numerous victims who invested in the defendants’ company," U.S. Attorney Sally Yates said in the release.

"By issuing false information about the company’s assets, the defendants lured victims into purchasing stock at artificially high prices. While the defendants got rich, victims lost millions," Yates said.

According to Yates and information presented in court, the criminal activity began in August 2006. The three men conspired to issue false press releases and financial statements to inflate the stock price while transferring shares to family members, who then sold at the inflated prices.

Maggie Simi February 25, 2012 at 12:51 AM
LOL
Maggie Simi February 25, 2012 at 01:00 AM
Poor victims and their families
Maggie Simi April 01, 2012 at 08:13 PM
Amen
John Yezekial April 22, 2012 at 09:29 PM
Roofie's wife should be in prison also. She's been pumping this crapola on internet message boards for years. As for his kid's, with those genes and parent they don't have a chance in life and ought to be fostered out to try to repair the damage done by Roofie and his common law wife.
Francois Baconia December 01, 2012 at 09:19 AM
Regardless of whether these guys are guilty or not, the SEC did not protect investors here but flat out FUCKED them over with the 2 week halt. The SEC protected the interest of the broker dealers who sold many times over the outstanding shares available. If they had not halted the stock the BD's would have had to cover a boat load of air shares they naked shorted with no intent of borrowing. By halting trading, the SEC enabled the stock market scam perpetrating BD's to never have to cover these naked shorts. Thanks SEC. The real shareholders are screwed over with no restitution while the stock market swindlers continue to sell shares they don't have to sell. How about overseeing the DTCC to make sure the BD's don't sell 3,4,5 times the number of shares that are in the float. Last time I checked counterfeiting was a crime!

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