A Carlsbad man has been arrested for allegedly taking part in a “pump-and-dump” scheme, in which prosecutors say he sold shares to investors at artificially inflated prices, netting him millions in illegal profits, the U.S. Attorney’s Office said Monday.
Joseph A. Padilla, 53, was arrested last week at San Diego International Airport and is expected to appear in a federal courtroom in Boston on one count of securities fraud.
Padilla, a former stockbroker who was barred from the securities industry in 2012 by the U.S. Securities and Exchange Commission, is accused of fraudulently inflating the stock price for shares of Charlestowne Premium Beverages Inc., then selling millions of those shares at pumped-up prices.
The U.S. Attorney’s Office says the scheme generated more than $7 million in illicit proceeds.
–City News Service