Federal prosecutors have disclosed a plea agreement today with New York lawyer Robert Brown. Brown was charged with lying to federal investigators about his knowledge of a fraudulent stock sale.
Robert Brown, a former partner at New York's Reitler Brown & Rosenblatt (now Reitler Kailas & Rosenblatt), agreed to plead guilty to obstruction of justice for hiding what he knew about a "pump and dump" scheme involving an unnamed investment firm in Newport Beach, Calif. According to documents filed at the U.S. District Court for the District of Columbia, Brown also helped an executive from the firm, as well as the chief executive officer and a member of the board of directors of a Chinese company, fraudulently transfer more than $25 million dollars through a series of shell companies into accounts they controlled.
Brown, who will forfeit $275,000 of ill-gotten gains, could face 10 to 16 months in prison, and up to a $30,000 fine.
What companies are targeted by the government's investigation? The plea agreement says that none of Brown's testimony will be used to prosecute him in any case relating to the following companies: Xinhua Finance Limited; Biophan Technologies, Inc., currently known as Phantom Entertainment, Inc.; Infinium Labs, Inc.; IT&E International, Inc., now known as Averion International Corp.; Aztec Oil and Gas, Inc.; Small World Kids, Inc.; Visijet, Inc.; Perfisans Holdings, Inc.; and Xinhua Finance Media Limited.
Hint hint.