Patriarch Of Father 'N Sons Pump And Dump Scam Pleads Guilty To Protect One Of Three Offspring
Jason+Derek just outside the shot. (Getty Images)
Yesterday, we discussed the uncomfortable situation going down in the Stewart family, wherein ex-Perella Weinberg employee Sean Stewart might go to jail because of a recording of his father, Bob Stewart, talking to a government witness about his son giving him inside information obtained at work.* Today, there's awkward state of affairs of the Galanis clan, whose father John, and three sons Jason, Jared and Derek, have been accused of running a pump and dump scheme. It's unclear what Jared did to become dad's favorite but now this is happening:
[John] Galanis pleaded guilty Wednesday before U.S. Magistrate Judge Sarah Netburn in New York to one count of securities fraud and one of conspiracy to commit securities fraud, in exchange for a sentence of as much as 10 years in prison and a fine of $30,000 to $5 million. He also agreed to forfeit more than $19 million. His lawyer, David Touger, said after the hearing that his client pleaded guilty to avoid implicating his son Jared, without mentioning the other children named in the indictment.
That's going to take some therapy to get over! In related news, for those of you wondering, yes, 50% of Team Galanis is battling securities fraud charges on multiple fronts:
Jason and John Galanis face additional charges, in an unrelated case, that they stole the proceeds of a $68 million bond issue in the name of a South Dakota American Indian tribe. They used the proceeds to pay legal bills and taxes, buy luxury goods and make $3 million in improvements to Jason Galanis’s Bel Air, California, home, prosecutor charged.
Patriarch in Alleged Pump-and-Dump Scheme Pleads Guilty [Bloomberg]
*Stewart the Younger's lawyers claim that Daddy Stewart obtained and traded on information unbeknownst to his son; prosecutors say otherwise.
