Ex-Linkbrokers Employee Pleads Guilty to Stock Fraud Role
Marek Leszczynski, a former employee of LinkBrokers Derivatives Corp., a unit of London-based ICAP Plc (IAP), pleaded guilty to his role in an scheme that involved lying to clients about the price of securities bought and sold for their accounts.
Leszczynski, arrested in October with Benjamin Chouchane, a former broker for LinkBrokers, pleaded guilty to a single conspiracy count today before U.S. District Judge John Keenan in Manhattan. Prosecutors claimed misrepresentations by Chouchane, Leszczynski and others garnered illegal profit for their employer and bonuses for themselves.
Leszczynski, 44, identified by prosecutors as a broker, was indicted in December on two counts of conspiracy to commit securities and wire fraud and a count of securities fraud. Chouchane pleaded guilty in June to one count of conspiracy. A third man, Henry Condron, pleaded guilty in October to being part of the scheme, the U.S. said.
Keenan scheduled sentencing for Leszczynski, who faces as much as five years in prison, for Dec. 19. Prosecutors and defense attorneys agreed that under the U.S. sentencing guidelines the judge should consider a term of 46 to 57 months. Leszczynski, a citizen of the U.K., will probably be deported after he serves his sentence, Keenan said.
Leszczynski also agreed to forfeit $1.5 million.
The U.S. Securities and Exchange Commission alleged in a suit filed in October that the three men and a fourth former LinkBrokers employee, Gregory Reyftmann, illegally took $18.7 million from customers by reporting fake execution prices on more than 36,000 transactions over four years.
The criminal cases is U.S. v. Leszczynski, 12-cr-00923, U.S. District Court, Southern District of New York (Manhattan). The SEC case is SEC v. Leszczynski, 12-cv-7488, U.S. District Court, Southern District of New York (Manhattan).
---With assistance from Patricia Hurtado in federal court in Manhattan. Editors: Fred Strasser, Charles Carter
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